STUDYING FOR THE SIE EXAM? MAKE SURE THAT YOUR SIE STUDY MANUAL HAS FULL GLOSSARY OF TERMS

In preparing for the Securities Industry Essentials exam (SIE), students can deprive themselves of an important study aid if their study manual does not contain a full glossary of terms. A glossary of terms is often missing in study manuals where the authors cut corners. A glossary is important because it allows the reader to use its content as a check list of important items in preparation for the SIE test.

Bob Eder's Study for the SIE Exam has a full glossary. There are over 200 entries in Bob Eder's SIE glossary, beginning with 12b-1 fees and ending with Yield to Maturity.

Consider Bob Eder's glossary where it covers balance of payments and balance of trade. These are difficult concepts for many SIE applicants. Here are the descriptions from Bob Eder's glossary:

"Balance of Payments—this is not the same as balance of trade. BOP includes balance of trade, but also adds inflows coming into the U.S., and subtracts outflows, whether involving persons, companies, or governments. Balance of payments includes dividends received or paid on stock, interest received or paid on bonds, and loans/borrowings involving the U.S. government to or from foreign countries."

"Balance of Trade—Balance of trade is calculated by taking receipts from exports (i.e., when U.S. companies sell goods to non-U.S. businesses), and then subtracting the cost of goods imported into the U.S. Here is an example. For the month of August, U.S. businesses sell or export $100 million in American goods to overseas buyers. They also purchase or import $90 million of goods produced in foreign countries. The U.S. balance of trade for August is a positive $10 million."

Therefore, be careful when purchasing an SIE study manual. Look for a book that contains a full glossary. It could mean the difference in passing your SIE exam.

Here is the link to FINRA's Content Outline for the SIE exam. See the references to international economic factors, such as the U.S. balance of payments, under section 1.3.3 of FINRA's Content Outline.

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.

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