STUDY FOR THE SECURITIES INDUSTRY ESSENTIALS EXAM (SIE) EXAM

FINRA publishes a Content Outline for the Securities Industry Essentials (SIE) Exam, and Section 1.4 covers types of offerings, role of participants, and Shelf Offerings and Shelf Registrations. FINRA thus tells SIE candidates that questions on Shelf Offerings may appear on their exams. Bob Eder discusses Shelf Offerings in his Study for the Securities Industry Essentials (SIE) Exam . Here is a sample of Bob Eder's treatment: "Shelf Registrations —The SEC allows many companies to register new issues called "shelf registrations." These shelf registrations allow companies to file all the new-issue paperwork with the SEC, and then to issue shares at any time during a three-year window. Shelf registrations utilize Form S-3 to file new issues. Shelf registrations have both good features and bad features. They allow a company to quickly issue new shares, given that the new issue paperwork is already on file with the SEC, but they can cause existing shareholders to suffer a

If you plan to take the Securities Industry Essentials (SIE) Exam, you should make sure that you study and know about the rules of Securities Investor Protection Corporation, or SIPC. Why do you need to know about SIPC? The answer is that rules of SIPC are included in FINRA's Content Outline for the SIE Exam. You need to know what is covered by SIPC protection, how it is covered, and to what extent. For example, are money market funds covered? Here is what SIPC itself says about money market funds: "ARE MONEY MARKET MUTUAL FUNDS PROTECTED BY SIPC? ARE THEY SUBJECT TO THE $250,000 CASH LIMIT? "Money market mutual fund shares held in a customer’s account at a brokerage firm qualify as “securities” under the Securities Investor Protection Act (SIPA) and therefore are subject to the $500,000 limit of protection, not the $250,000 limit applicable to cash. It is important to remember that, although many investors treat money market funds like cash, they are securities and, as

Why should you study the rules of SIPC if you are taking the Securities Industry Essentials (SIE) Exam? The answer is that exam questions about SIPC could likely show up on your exam. Why do I say this? I say it because FINRA publishes a 2024 Content Outline for the Securities Industry Essentials Exam, and FINRA specifically mentions SIPC rules  in Section 1.1.3 of the Content Outline. According to SIPC rules, the following persons are not eligible for SIPC relief in the event that they hold an account with a brokerage firm that goes into SIPC liquidation. Here is what SIPC says about those ineligible: "Most customers with cash and securities missing from customer accounts are eligible for SIPC protection. SIPC's funds may not be used to pay the claim of any customer of a brokerage firm in liquidation under the Securities Investor Protection Act if that customer is: A general partner, officer, or director of the firm. The beneficial owner of five percent or more of any class o

Are you planning to sit for the Securities Industry Essentials (SIE) exam? Then you owe it to yourself to consider Bob Eder's study text, Study for the Securities Industry Essentials (SIE) Exam . Bob Eder's book,  Study for the Securities Industry Essentials (SIE) Exam , can help you prepare for the SIE test.  Unlike other study texts for the SIE exam, Bob Eder does not throw in superfluous material to make the material appear larger or more important. How can you be sure? Bob Eder's book lists the numbers from FINRA's Content Outline that inform the student what the SIE exam can ask the test applicant, not superfluous material that does not have a chance of appearing. Bob Eder thus saves you valuable time in studying test material and avoiding what does not appear. Here is the link to FINRA's Content Outline for the SIE Exam.  Bob Eder 's Study for the SIE Exam closely follows FINRA's Content Outline so that you don't waste time in studying material no

Bob Eder's  Study for the Securities Industry Exam (SIE)  contains 17 chapters, closely following the official FINRA Content Outline for the SIE Exam. One of the important topics that you need to know for the SIE Exam is options. ( See 2.1.3 in the FINRA Content Outline Study Guide. )   Study for the SIE Exam  covers options in depth and detail. Be prepared for Options on the SIE Exam. Don't walk in on the test without a working knowledge of Options. Here is a Bob Eder question on Options. See if you can answer it correctly! Which two of the following are bullish options strategies? i.      long calls ii.     short calls III.    long puts iv.    short puts a.    i and iii b.    i and iv c.    ii and iii d.    ii and iv The answer is (b), long calls and short puts.  Long calls are bullish because they are profitable if the underlying stock goes up. Then the value of a call goes up.  Short puts are bullish because they are  profitable if the underlying stock goes up, in which cas

The Securities Industry Essentials (SIE) Exam is a necessary first step if you plan to sit for many securities exams, including the Series 6 and Series 7 exams. If you do intend to sit for the SIE Exam, make sure that you know about self-regulatory organizations (SRO's), what they are, who they are, and what their purpose is. FINRA publishes a Content Outline for the SIE Exam, and Section 1.1.2 specifically talks about Self-Regulatory Organizations(SRO's), indicating that you should expect to see questions about SRO's on your exam. Bob Eder discusses SRO's in his Study for the Securities Industry Essentials (SIE) Exam. Here is a sample of Bob Eder's treatment: Self-Regulatory Organizations                                                                      (1.1.2) Under the SEC's control, and reporting to the SEC, are the several self-regulatory organizations called SRO's. The theory behind this organization is that the SEC cannot regulate the day-to-day