SIE EXAM ASKS QUESTIONS ABOUT SELF REGULATORY ORGANIZATIONS AS INDICATED IN FINRA'S CONTENT OUTLINE

Section 1 (1) (2) of FINRA's Content Outline for the Securities Industry Essentials (SIE) exam covers self-regulatory organizations, or SRO's. The Content Outline indicates that a person taking the SIE exam should be familiar with, and have knowledge of, the purpose and mission of an SRO, and understand the jurisdiction and authority of the various SRO's such as the CBOE, FINRA, and the MSRB.

Bob Eder's Study for the Securities Industry Essentials (SIE) Exam covers SRO's on page three. Here is the pertinent paragraph from Bob Eder:

Purpose of Self-Regulatory Organizations

Each SRO is primarily dedicated to making sure that investors and the public are protected in their relationships with broker/dealers and securities professionals. A SRO tries to foster and maintain integrity in the market place by policing and regulating its members. A SRO is not a government entity but set up as a non-profit corporation. A SRO makes rules for its member broker/dealers, enforces these rules, using penalties and sanctions, and strives for honesty and transparency in the markets. It also tries to educate investors and warn them of possible fraudulent schemes.

Bob Eder's Study for the Securities Industry Essentials (SIE) Exam closely follows FINRA's SIE Content Outline. Bob Eder's book lists Content Outline reference numbers for each major paragraph in the text, and it links each of the questions in the two end-of-text tests to the SIE Content Outline.

Why is this important? Because it assures the student/reader that the text and practice questions in Study for the Securities Industry Essentials (SIE) Exam stick closely to the items listed by FINRA in its Content Outline, thus saving the reader/student from spending useless hours on materials that are neither important nor relevant for the SIE exam.

Here is the link to FINRA's Content Outline for the SIE exam.

Study for the Securities Industry Essentials (SIE) Exam is available from Amazon in both paperback and Kindle e-book versions. 

Here is the link to Bob Eder's book on Amazon.

Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law in 2001.



Comments

Post a Comment

Popular posts from this blog

SIE EXAM INCLUDES QUESTIONS ON DEPOSITORY CLEARING CORPORATIONS, SO BE PREPARED!

Planning to take the Securities Industry Essentials (SIE) exam soon? Be prepared for questions asking about depository clearing corporations. Can you say in one sentence the purpose and function of the Depository Trust & Clearing Corporation (DTC)? No response? Then you are like most SIE candidates, so don't feel too bad! Bob Eder's Study for the SIE Exam covers the definition and functions of the DTC, as well as the Options Clearing Corporation and ACATS. Here is a section from Bob Eder's book taken from page 12: Depository Trust & Clearing Corp. (DTCC) (1.1.4)  "The Depository Trust provides clearing and transfer services to the brokerage industry in the U.S. and throughout the world. With volume of securities trades approaching millions on a daily basis, imagine brokerage operations without a centralized entity that could match buys with sells, and keep brokerage firm back offices running smoothly and efficiently. What chaos without an organization like the
Read more

TAKING THE SIE EXAM? DID YOU KNOW THAT THE LARGEST SECTION OF THE TEST IS SECTION 2 PRODUCTS AND THEIR RISKS?

Have you looked at FINRA's SIE Exam Content Outline or Test Specifications? You would find that the largest percentage of questions on the SIE Exam comes from Section 2, Understanding Products and Their Risks . Forty-four percent of the questions on your test will come from this Section. For example, Section 2 covers Equity Securities, including knowledge of voting rights, convertible securities, and selling control or restricted stock. Bob Eder in his Study for the Securities Industry Essentials (SIE) Exam has detailed coverage of these items. Here is a sample of Bob Eder's treatment: Control Stock (2.1.1) Control stock denotes shares that have been purchased by a control person or by an affiliated person. When a person owns shares in a company in which he/she is an officer, controlling person, termed an "affiliated person," there are also restrictions on the sale of that stock. The SEC calls the shares, "control shares." Only control or affiliated perso
Read more

SEC CHARGES 10 BROKER/DEALERS/INVESTMENT ADVISERS WITH FAILURE TO KEEP RECORDS OF "OFF-CHANNEL COMMUNICATIONS" WITH CLIENTS

FINRA makes available a Content Outline for the Securities Industry Essentials (SIE) Exam for those planning to sit for the exam. This Content Outline describes the subject matter of the SIE Exam. The SIE Content Outline includes Section 3.2.4 which covers Books and Records Regulations, and it encompasses the use of social media to communicate with clients, digital messaging, and internet communications. From time to time, the SEC issues press releases about penalties and charges brought against broker/dealers and advisers. Here is a recent one that imposes penalties on 10 firms for inadequate Record-Keeping of electronic communications, called "Off-Channel Communications." We include the SEC Release here because it demonstrates that a broker or adviser must treat the rules as having real life consequences, potentially bringing serious penalties and large fines for non-observance. Students who plan on sitting for the SIE Exam should pay careful attention to the SEC Release as
Read more