Securities Industry Essentials
The Securities Industry Essentials (SIE) exam is a foundational-level exam that assesses a candidate's knowledge of the securities industry. It covers key concepts including types of products and their risks, the structure of the securities industry markets, regulatory agencies and their functions, and prohibited practices. The SIE is open to anyone aged 18 or older and is a co-requisite for most FINRA representative and principal-level registration exams.
Chapters
Knowledge of Capital Markets
Regulatory agencies, market structure, economic factors, and the IPO process
Equity Securities
Common stock, preferred stock, rights, warrants, and American Depositary Receipts
Debt Securities
Bond fundamentals, types of bonds, yields, pricing, and interest rate risk
Options Basics
Calls, puts, option strategies, premiums, and the Options Clearing Corporation
Packaged Products
Mutual funds, ETFs, variable annuities, UITs, and closed-end funds
Alternative Investments
REITs, DPPs, hedge funds, private equity, and structured products
Investment Risks
Systematic and unsystematic risks, risk assessment, portfolio diversification, and suitability
Customer Accounts
Account types, registration, documentation requirements, and fiduciary responsibilities
Trading & Settlement
Order types, trade execution, settlement procedures, and market mechanics
Prohibited Activities
Insider trading, market manipulation, churning, unauthorized trading, and ethical obligations
Regulatory Framework
SROs, SEC oversight, securities legislation, registration requirements, and compliance