STUDY FOR THE SECURITIES INDUSTRY ESSENTIALS EXAM (SIE) EXAM

If you plan on taking the Securities Industry Essentials (SIE) exam, are you prepared for questions asking about "market structure"? FINRA lists Market Structure under 1.2 of its  SIE Content Outline . Market Structure includes types of markets in the securities industry. For example, what is the difference between the primary market and the secondary market? What does the third market entail, and who are the participants? How about the fourth market? Do you know the difference between the markets, such as the fourth market and the primary market? Bob Eder's text Study for the SIE Exam contains a full discussion of Market Structure on page four, five and six, giving examples and practice questions. Here is the link to FINRA's Content Outline for the SIE exam.  See especially Market Structure under 1.2 of FINRA's Content Outline. Study for the Securities Industry Essentials (SIE) Exam  is available from Amazon in both paperback and Kindle e-book versions.  Here is...

Planning to take the Securities Industry Essentials (SIE) exam soon? Be prepared for questions asking about depository clearing corporations. Can you say in one sentence the purpose and function of the Depository Trust & Clearing Corporation (DTC)? No response? Then you are like most SIE candidates, so don't feel too bad! Bob Eder's Study for the SIE Exam covers the definition and functions of the DTC, as well as the Options Clearing Corporation and ACATS. Here is a section from Bob Eder's book taken from page 12: Depository Trust & Clearing Corp. (DTCC) (1.1.4)  "The Depository Trust provides clearing and transfer services to the brokerage industry in the U.S. and throughout the world. With volume of securities trades approaching millions on a daily basis, imagine brokerage operations without a centralized entity that could match buys with sells, and keep brokerage firm back offices running smoothly and efficiently. What chaos without an organization like the...

Study Guide Reference Numbers for the SIE exam. We follow the syllabus and content outline published by FINRA for the Securities Industry Essentials (SIE) exam. As an aid for our readers, we have included FINRA outline numbers for reference both in the text and in the two exams at the end of the book. The SIE exam does not quiz a candidate on the outline numbers. We insert them in our book solely for those readers who want to refer to the outline. Furthermore, these references demonstrate to you our reader that we have not inserted extraneous material that is not covered by the SIE exam. We list the outline numbers listed in FINRA's Study Guide, such as (1.2.3) or (2.4.2). If you wish, you can freely disregard these reference numbers, but they can help you, if you wish, locate the topic in FINRA's Study Guide. Here is the link to FINRA's Content Outline for the SIE exam. Study for the Securities Industry Essentials (SIE) Exam  is available from Amazon in both paperback and ...

For applicants taking the SIE exam, FINRA's Content Outline for the Securities Industry Essentials (SIE) exam lists knowledge required of equity securities in section 2.1.1. This includes ownership of these securities, order of liquidation, and limited liability of shareholders. It also specifically includes voting rights, the nature of convertible equity securities, and lastly, Rule 144, dealing with with control and restricted securities. Bob Eder J.D. treats each one of these topics in Chapter 3 of Study for the Securities Industry Essentials (SIE) Exam. Here is Bob Eder's treatment of limited liability of common shares: Limited Liability of Common Shares One of the interesting aspects of ownership of common shares is that a shareholder incurs only limited liability for the debts of the issuing corporation. This is not meant to imply that the value of common stock cannot decrease to zero, which it often does for stock of inferior corporations. But no matter how much debt is ...

If you plan to sit for the Securities Industry Essentials exam (SIE), you should be aware that the SIE exam asks questions about securities offerings. How do I know this? I know this because Section 1.4 of FINRA's Content Outline indicates that the applicant should study and know types and kinds of offerings. For example, Section 1.4 of the Content Outline indicates that a candidate should expect to be asked about public versus private offerings, initial public offerings, secondary offerings, and follow-on offerings. Also shelf offerings, both definition and purpose. Bob Eder's book, Study for the SIE Exam , covers  in detail  all these topics and more. Here is the link to FINRA's Content Outline for 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 . Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, ...

Section 1 (1) (2) of FINRA's Content Outline for the Securities Industry Essentials (SIE) exam covers self-regulatory organizations, or SRO's. The Content Outline indicates that a person taking the SIE exam should be familiar with, and have knowledge of, the purpose and mission of an SRO, and understand the jurisdiction and authority of the various SRO's such as the CBOE, FINRA, and the MSRB. Bob Eder's Study for the Securities Industry Essentials (SIE) Exam covers SRO's on page three. Here is the pertinent paragraph from Bob Eder: Purpose of Self-Regulatory Organizations Each SRO is primarily dedicated to making sure that investors and the public are protected in their relationships with broker/dealers and securities professionals. A SRO tries to foster and maintain integrity in the market place by policing and regulating its members. A SRO is not a government entity but set up as a non-profit corporation. A SRO makes rules for its member broker/dealers, enforces...

Exercise on most options on stocks settle by delivery of the underlying shares. This means that upon settlement, the writer of a call on GM stock must deliver or sell 100 shares of GM stock. The holder of a put on IBM stock will, upon settlement, deliver or sell 100 shares of IBM stock. However, when it comes to exercise of index options, such as puts and calls on the S&P 100 Index, settlement of exercise is done solely in cash, and not by delivery of the underlying index. Why? Because it would be nearly impossible to deliver the index. How exercise of options is settled is included in FINRA's Content Outline for the SIE exam. See 2.1.3 of the Content Outline. Bob Eder's  Study for the Securities Industry Essentials (SIE) Exam  closely 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 im...