STUDY FOR THE SECURITIES INDUSTRY ESSENTIALS EXAM (SIE) EXAM

For those who are planning to sit for the Securities Industry Essentials (SIE) Exam to become registered stock brokers, here is an interesting release from the SEC about Insider Trading by someone who the SEC alleges is a "serial insider trader." SEC Charges Florida Investment Adviser a Second Time for Insider Trading Wellington resident agrees to pay a penalty equal to three times his unlawful profits to settle charges FOR IMMEDIATE RELEASE 2023-145 Washington D.C., Aug. 2, 2023 — The Securities and Exchange Commission today filed insider trading charges against Charles Rustin Holzer, a family office executive and former broker who last year settled SEC charges that he traded in options of Dun & Bradstreet Corp. (DNB) on inside information. The SEC’s latest complaint alleges that, in addition to the options trades that were the subject of the SEC’s prior lawsuit, Holzer also placed unlawful trades in DNB stock through offshore accounts that were not disclosed to the SEC ...

Over the years there have been some securities professionals whom the SEC has accused of illegally using inside information to make gains on trading stocks. Don't allow yourself to fall into this trap. It could ruin your career in the securities business, as well as subject you to fines, civil penalties, and even criminal convictions. FINRA specifies in its Content Outline for the Securities Industry Essentials exam that you should expect questions about Insider Trading on the exam. See SIE Content Outline, Section 3.3.2. Bob Eder discusses insider trading in detail in his Study for the Securities Industry Essentials Exam . Here is a sample of Bob Eder's treatment of using inside information: EXAMPLE Jason, a hedge fund manager, is managing several billions of client monies. He asks for and receives confidential information about XYZ Corp.’s forthcoming earnings from Bill, a friend, who happens to be on XYZ’s board. Bill tells Jason that XYZ will unexpectedly report very good...