TAKING THE SIE EXAM? STUDY MUNICIPAL FUND SECURITIES AND BE ABLE TO DEFINE THEM
Never heard of municipal fund securities? Then be forewarned, the Securities Industry Essentials exam covers these securities and expects you to know what they are, how they are defined, and what they include.
Many SIE study manuals skip them altogether. Make sure that your study manual discusses and explains them.
Bob Eder devotes six whole pages to Municipal Fund Securities on pages 119 through 124 in his Study for the Securities Industry Essentials Exam, including practice questions testing the reader on his/her understanding and grasp of the text.
Here is a Bob Eder paragraph on one type of municipal fund securities, local government investment pools, taken from Bob Eder's book:
"Local Government Investment Pools (LGIP's)
(2.1.5)
Who creates local government investment
pools? Answer: A state or local government creates these LGIP's as trusts for
the benefit of participating local governments within the state. These LGIP's
are considered to be municipal securities by the SEC and municipal fund
securities by the MSRB. These investment pools provide an investment choice for
local governments that have excess funds on hand that they wish to invest. LGIP's
try to take into account the timing of the cash needs of participating
governmental entities."
Note that Bob Eder's book includes a reference to FINRA'S SIE Content Outline when it lists "2.1.5". This assures the reader/student that this material is indeed tested by the SIE exam, and not some extraneous non-important filler thrown in by authors to pad their study manual books.
Here is the link to FINRA's Content Outline for the SIE exam. See the references to the Municipal Fund Securities in FINRA's Content Outline, section 2.1.5.
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