STUDY FOR THE SECURITIES INDUSTRY ESSENTIALS EXAM (SIE) EXAM

Bob Eder is pleased to announce that the price for Study for the Securities Industry Essentials (SIE) now costs only $21.99 from Amazon and other book sellers. Our content includes 417  pages, 17 chapters, including a full Glossary and Index. Here is the  link to FINRA's Content Outline for the SIE Exam . Bob Eder's  Study for the SIE Exam  closely follows FINRA's Content Outline so that you don't waste time in studying material not required by the SIE Exam. 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 . For questions about Bob Eder's  Study for the Securities Industry Essentials (SIE) Exam,  or questions in general the SIE exam, feel free to email Bob Eder at bobeder@bobeder.net. Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law, in 2001.  See   Bob Eder's A...

In sitting for the Securities Industry Essentials (SIE) Exam, sometimes candidates, in their desire to cover all bases, fail to learn about the terminology of buying and selling securities. For example, every securities trade is either an opening trade or a closing trade. This applies not only to trading stocks, but to all other types of securities such as options and bonds. An opening trade is when Trader Joe purchases 100 shares of XYZ Corp for $50 per share. Before the trade, Trader Joe had no financial interest in XYZ stock. Now, after this opening trade, he has a long position of 100 XYZ shares. With a long position in XYZ stock, Trader Joe hopes the share price of XYZ goes up. Thus Trader Joe has initiated a bullish position. Assume thereafter that XYZ shares do rise in value to $90. Trader Joe decides to take his profits, so he sells his XYZ shares at 90. This sale is called a closing trade or a closing transaction. Why "closing"? Because the sell transaction closes ou...

If you plan to take the Securities Industry Essentials (SIE) Exam, you should make sure that you study and know about the rules of Securities Investor Protection Corporation, or SIPC. Why do you need to know about SIPC? The answer is that rules of SIPC are included in FINRA's Content Outline for the SIE Exam. You need to know what is covered by SIPC protection, how it is covered, and to what extent. For example, are money market funds covered? Here is what SIPC itself says about money market funds: "ARE MONEY MARKET MUTUAL FUNDS PROTECTED BY SIPC? ARE THEY SUBJECT TO THE $250,000 CASH LIMIT? "Money market mutual fund shares held in a customer’s account at a brokerage firm qualify as “securities” under the Securities Investor Protection Act (SIPA) and therefore are subject to the $500,000 limit of protection, not the $250,000 limit applicable to cash. It is important to remember that, although many investors treat money market funds like cash, they are securities and, as...

Why should you study the rules of SIPC if you are taking the Securities Industry Essentials (SIE) Exam? The answer is that exam questions about SIPC could likely show up on your exam. Why do I say this? I say it because FINRA publishes a 2024 Content Outline for the Securities Industry Essentials Exam, and FINRA specifically mentions SIPC rules  in Section 1.1.3 of the Content Outline. According to SIPC rules, the following persons are not eligible for SIPC relief in the event that they hold an account with a brokerage firm that goes into SIPC liquidation. Here is what SIPC says about those ineligible: "Most customers with cash and securities missing from customer accounts are eligible for SIPC protection. SIPC's funds may not be used to pay the claim of any customer of a brokerage firm in liquidation under the Securities Investor Protection Act if that customer is: A general partner, officer, or director of the firm. The beneficial owner of five percent or more of any class o...