STUDY FOR THE SECURITIES INDUSTRY ESSENTIALS EXAM (SIE) EXAM

The Securities Industry Essentials (SIE) Exam is a necessary first step if you plan to sit for many securities exams, including the Series 6 and Series 7 exams. If you do intend to sit for the SIE Exam, make sure that you know about self-regulatory organizations (SRO's), what they are, who they are, and what their purpose is. FINRA publishes a Content Outline for the SIE Exam, and Section 1.1.2 specifically talks about Self-Regulatory Organizations(SRO's), indicating that you should expect to see questions about SRO's on your exam. Bob Eder discusses SRO's in his Study for the Securities Industry Essentials (SIE) Exam. Here is a sample of Bob Eder's treatment: Self-Regulatory Organizations                                                      ...

FINRA has strict rules when it comes to communicating with customers. These rules encompass what you must say, what you must not say, and the requirement to keep and maintain records. FINRA's Content Outline for the Securities Industry Essentials exam lists Communications with Customers as an important item in Section 3.2.5. Bob Eder devotes a whole chapter in his Study for the Securities Industry Essentials (SIE) Exam to the rules on communicating with customers. Here is a sample from Bob Eder's book on "retail communications": "Principal Must Approve (3.2.5) Before a registered person may use any retail communication with the public, a registered principal must approve it in writing. The principal must give approval for retail communications before the earlier of either using the material or filing it with FINRA’s Advertising Regulation Department. Given that institutional investors are sophisticated investors, FINRA does not require that a principal give pr...

Have you ever taken a look at FINRA's Study Outline for the Securities Industry Essentials exam? Why do I ask this question? Because the Study Outline indicates what you need to know to pass the test, and also, equally important, what you don't need to know. Everything that is mentioned in FINRA's Study Outline is grist for the SIE exam, but stuff that is not mentioned means that it is not tested and therefore not necessary to know. This is why Bob Eder's Study for the Securities Industry Essentials Exam is so useful. Every major paragraph in the book connects to the Study Outline. For example, the Study Outline in section 3.1.3 talks about Regulation T, regular-way settlement, and the time periods allowed. Our book discusses these topics and next to each appropriate paragraph indicates "3.1.3." This is an important aid for an applicant's study because it says that this material and these topics are tested on the SIE exam. Make sure that if you purchase a...

Taking the SIE exam? Don't neglect to study rules of FINRA and other SRO's! What is an SRO? It stands for self-regulatory organization, such as FINRA, the Chicago Board Options Exchange (CBOE), the Municipal Securities Rulemaking Board (MSRB), and the various stock exchanges. Section 4.1 of the SIE Content Outline is entitled "SRO Regulatory Requirements for Associated Persons." Take a look at this section in the SIE Content Outline. Notice the rules and regulations that are listed. What does this mean for you and passing the test? It means that you cannot neglect studying the rules in depth and in detail. Bob Eder J.D.'s book  Study for the Securities Industry Essentials (SIE) Exam  covers the important rules and regulations of FINRA and the other SRO's.  Bob Eder's book 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.) deg...

For scoring purposes, the Securities Industry Essentials (SIE) exam is broken into four sections. Section I deals with " Knowledge of the Capital Markets ." There are 12 questions out of 75 dealing with this topic, or 16 percent of the exam. Therefore, you need to know what the capital markets entail. For example, you need to be able to explain the difference between the SEC and the various self-regulatory organizations. When the SIE exam refers to an "SRO," you need to know that it is speaking about a self-regulatory organization, such as FINRA. The SIE asks questions about other securities regulators, such as the North American Securities Administrators Association, or NASAA. Know also about the Securities Investors Protection Corp. and the Federal Reserve, or Fed. We indicate here only a few of the topics covered in the SIE's Knowledge of the Capital Markets. Bob Eder's Study for the Securities Industry Essentials (SIE) Exam covers the subject in d...