STUDY FOR THE SECURITIES INDUSTRY ESSENTIALS EXAM (SIE) EXAM

The Securities Industry Essentials exam asks questions on many different topics pertaining to the securities business. One such topic is the offering of new issues of stocks and bonds to the general public. These new offerings raise capital for the issuing companies which allows them to pursue new ventures or increase the size of their present businesses. FINRA's Content Outline for the SIE exam covers new offerings in paragraph 1.4. If you plan to sit for the SIE exam, do not neglect studying this section on underwriting before you go and take the test. Paragraph 1.4 of the Content Outline discusses the roles of participants in new offerings, such as investment bankers, underwriting syndicates, and municipal advisers. You should know and understand what each of these participants do. Bob Eder's book, Study for the Securities Industry Essentials (SIE) Exam, covers this subject in detail. For example, here is a paragraph from Bob Eder's SIE book: "Underwriting Syndica...

Use caution when purchasing an SIE study text or SIE practice questions. Why? Because some study texts on the market don't follow or use FINRA's Content Outline for the SIE test. Instead, some books or study aids throw in material from other FINRA exams, even though it does not apply to the SIE and is not mentioned in the SIE Content Outline. Bob Eder's Study for the Securities Industry Essentials (SIE) Exam follows FINRA's SIE Content Outline. It 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 i...

One of the valuable study aids for the Securities Industry Essentials (SIE) exam is the Content Outline published by FINRA. It lists all the topics that the SIE exam covers, meaning that if you plan to take the test, you should be prepared to answer. For example, Section 2.1.1 of the Content Outline lists order of liquidation for a company declaring Chapter 11 bankruptcy, types of voting rights, benefits of convertible securities, and securities that can only be sold under SEC Rule 144. Bob Eder J.D. has a study guide for the test, covering all of the above topics. For example, his book,  Study for the Securities Industry Essentials (SIE) Exam , covers order of liquidation beginning on page 39 of Chapter 3 on Equity Securities. At the end of the section, Bob Eder inserts a question on who gets what first for a company in bankruptcy. Also in its Chapter 3, Study for the Securities Industry Essentials (SIE) Exam also covers types of rights, explaining the difference between st...