STUDY FOR THE SECURITIES INDUSTRY ESSENTIALS EXAM (SIE) EXAM

Taking the Securities Industry Essentials Exam soon? Then be prepared for questions on Types of Orders, such as market orders, limit orders and stop orders. FINRA publishes an SIE Test Content Outline, and in Section 3.1.1 lists Types of Orders. Bob Eder presents a full treatment of Types of Orders  in his Study for the Securities Industry Essentials (SIE) Exam . Here is a brief sample of Bob Eder's discussion: "Stop Orders (3.1.1) "A stop order is really a market order that waits, or depends, on some other trade execution in the same stock to first happen before the stop order can be executed. "Stop Orders Have Triggers "A stop order is "activated," "triggered," or "elected" once the indicated stop price is reached or breached by some other trade. Once a trade touches the stop price or there has been a "trade-through" (i.e., a trade below the stop price on a sell stop order, or a trade above the stop price on a buy ...

A big chunk of the 75 questions on the Securities Industry Essentials exam is on understanding trading, customer accounts, and prohibited activity. There are 23 questions comprising 31 percent of all questions. For example, Section 3.1.1 of FINRA's Content Outline includes knowledge of types of orders, such as stop orders, limit orders, and market orders, good-till-cancelled orders, discretionary orders, and solicited/unsolicited orders. If you are new to the securities industry, you probably have a hazy idea of these types of orders. However, hazy is not good enough to pass the SIE exam. You need to achieve a clear bright picture of when to use stop orders, when to use limit orders, etc. We indicate here only a few of the topics covered in the SIE's section on trading, customer accounts, and prohibited activities. Bob Eder's  Study for the Securities Industry Essentials (SIE) Exam   covers the subject in detail.  Study for the Securities Industry Essentials (SIE)...