STUDY FOR THE SECURITIES INDUSTRY ESSENTIALS EXAM (SIE) EXAM

  If you plan to sit for the  SIE Exam, be sure that you know examples of different types of common stock, such as shares looking for income, defensive shares, defense shares, growth shares. And make sure that you know examples of each type. For example, lets talk about defensive stock. The term defensive means stock of a company in a industry that does well in both good economic times as well as in economic downturns. Good examples of defensive industries are tobacco companies, supermarkets, liquor and beer manufacturers, and cosmetics. Even in recessions and depressions, earnings of these companies or industries do not change very much. Defensive does not refer to defense stocks. Defense stocks are stocks of companies like General Dynamics, Boeing, Lockheed Martin, and Northrup Grumman. These companies manufacture instruments of war. Defense stocks depend on countries wishing to wage war or defend their national territories. No war, then sales of armaments go down. Lots...

  The Securities Industry Essentials (SIE) Exam covers SEC Rules, including Regulation S-P on the privacy of consumer financial information and the safeguarding of customers' personal information. FINRA specifically lists Regulation S-P in its SIE Content Outline in Section 3.2.4. Recently the SEC has amended Regulation S-P "to address the expanded use of technology and corresponding risks that have emerged since the Commission originally adopted Regulation S-P in 2000. " The amendments cover situations where computer hackers unlawfully view, copy or steal  a firm's customer accounts records . Brokerage and advisory firms, including mutual fund firms, are required to detail steps in writing to be taken when a brokerage firm suffers such a break-in. Firms must also report such events to the SEC as soon as possible, but no later than 30 days of occurrence. Furthermore, firms must notify customers whose accounts are, or reasonably likely to be, among those breached or s...