SIE EXAM TESTS KNOWLEDGE OF EQUITY SECURITIES

Are you planning to sit for the Securities Industry Essentials (SIE) exam? If so, be aware that the SIE exam tests your knowledge of equity securities.

 For example, know the difference between different types of shares, such as authorized, issued, outstanding and treasury shares.

 Know about preferred stock, how it differs from common shares. Know the characteristics of participating preferred, callable preferred, cumulative preferred, and convertible preferred.

 As to convertible preferred shares, you must be able to work problems ascertaining conversion price, conversion ratio, parity price, what strategies to adopt if a company does, in fact, call in its convertible preferred shares.

 If you are weak on any of these areas, you may want to consider Bob Eder's Study for the Securities Industry (SIE) Exam. Its Chapter 3 is entitled Equity Securities, and covers all of the above topics, giving examples and practice questions to allow you to test your familiarity and knowledge.

 Study for the Securities Industry (SIE) Exam is available at Amazon in either paperback or Kindle e-book versions. Here is the link to Amazon and Bob Eder's book.

 Here is the link to FINRA's Study Outline for the SIE exam. Note Section 2.1.1 on equity securities.

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