Finra Securities Industry Essentials (SIE) Exam Questions

Finra Securities Industry Essentials Exam Exam Objectives

1. 1

   1.0 Regulatory Entities, Agencies, and Market Participants

   • 1.1Covers the structure, authority, and jurisdiction of key financial regulators.
   • 1.2Assesses the SEC’s role in enforcing securities regulations.
   • 1.3Evaluate the authority of self-regulatory organizations (SROs) such as FINRA and MSRB.
2. 2

   2.0 Market Structure

   • 2.1Covers the classification of financial markets: primary, secondary, third, and fourth markets.
   • 2.2Includes knowledge of electronic trading, OTC markets, and physical exchanges
3. 3

   3.0 Understanding Products and Their Risks

   • 3.1Examines different financial products and their associated risks.
   • 3.2Covers equity securities, including common stock.
   • 3.3Includes debt instruments such as Treasury securities and mortgage-backed securities.
4. 4

   4.0 Understanding Trading, Customer Accounts, and Prohibited Activities

   • 4.1Focuses on trading strategies, settlement processes, and corporate actions.
   • 4.2Covers different order types, including market, limit, stop, and good-til-canceled orders.
   • 4.3Evaluates knowledge of bid-ask spreads and discretionary vs. non-discretionary trading.
5. 5

   5.0 Overview of the Regulatory Framework

   • 5.1Evaluate self-regulatory organization (SRO) requirements.
   • 5.2Covers registration and continuing education for associated persons.
   • 5.3Includes the distinction between registered and non-registered individuals.
6. 6

   6.0 Employee Conduct and Reportable Events

   • 6.1Covers regulatory expectations regarding employee conduct and disclosure obligations.
   • 6.2Includes Form U4 and Form U5 for employment and regulatory reporting.