Securities Industry Essentials (FINRA SIE)

The SIE covers the fundamentals that you'll need for any role in finance, regardless of the specific field you might want to specialize in.

• Time1 hour and 45 minutes
• Format75 multiple choice
• Passing score70% (53/75)
• Exam fee$60
• DetailsFINRA 

FINRA's exam summary

Knowledge of Capital Markets

The basics, laws, and regulations of the financial markets. You’ll need to know the primary and secondary markets, the regulators (SEC and FINRA), and their rules (Act of 1933, etc).

12 questions, 16%

Understanding Products and their Risks

The products of the financial markets, which include stocks, bonds, mutual funds, ETFs, and options. You’ll need to know what these products are, the risks of investing in them, and how they benefit investors.

33 questions, 44%

Understanding Trading, Customer Accounts and Prohibited Activities

How customers buy and sell securities in their accounts. You’ll need to know different types of orders and accounts, how those orders are entered into the market, and the regulations that govern these activities.

23 questions, 31%

Overview of Regulatory Framework

How financial professionals operate in their jobs and the rules that govern their activities. You’ll need to know FINRA and SEC rules, ethics of working with clients, and general procedures for financial professionals.

7 questions, 9%

Achievable's content outline

1. Common stock

All things related to common stock, including rights of stockholders, stock markets, benefits & risks, and fundamental analysis. Various equity-related investments like ADRs, rights, warrants, and tender offers are also discussed.

2. Preferred stock

Characteristics, features, benefits, and risks of preferred stock. Additionally, this chapter dives into interest rates, their influence in the finance markets, and how interest rate changes affect preferred stock.

3. Bond fundamentals

The foundations of bonds, which are one of the most common types of securities in the markets. Topics covered include interest rates, bond characteristics, the debt markets, yields, and benefits & risks of bonds.

4. Corporate debt

Why corporations borrow money, how they do it, and different types of debt securities they offer. The bond markets and bank products like banker’s acceptances and CDs are also part of this chapter.

5. Municipal debt

The basics of municipal government products and why states, cities, and political subdivisions borrow money. Mainly focusing on general obligation (G.O.) bonds and revenue bonds, you’ll learn how your local government finances its activities.

6. US Government debt

The essentials of securities issued by the U.S. Treasury and federal agencies. The Federal Reserve, its monetary policy, and how it influences the economy is also examined.

7. Investment companies

What an investment company is, how they operate, and the rules and regulations of the Investment Company Act of 1940. Mutual funds, closed-end funds, exchange traded funds (ETFs), and unit investment trust (UITs) are specifically discussed in detail.

8. Alternative pooled investments

Products that work similarly to investment companies, but fall outside their definition. Primarily focusing on real estate investment trusts (REITs), hedge funds, and direct participation programs.

9. Options

The fundamental elements of options, which lock in future transaction prices. Single leg strategies, hedging strategies, income strategies, the option markets, stock options, and index options are explored.

10. Taxes

The basics of how investment returns are taxed. Taxation on dividends, interest, and capital gains are examined.

11. The primary market

Focusing on the characteristics and regulations of the primary market. The rules of the Securities Act of 1933 are covered in detail, which include IPO rules, exemptions, and the registration process.

12. The secondary market

The essentials of the secondary market, which is governed by the Securities Exchange Act of 1934. Specific stock markets, participants in the financial markets, and order types for securities are in the focus.

13. Brokerage accounts

How brokerage accounts work, the process of opening one, and the different types of accounts available. Cash accounts, margin accounts, fiduciary accounts, and rules relating to firms offering brokerage accounts are covered in detail.

14. Retirement and education plans

The structures of qualified and non-qualified retirement plans. Additionally, education plans (Coverdell ESPs and 529s) are covered. Contribution limits, penalties, risks, and benefits of using retirement and education plans are further discussed.

15. Rules and Ethics

The do’s and don’ts of finance, specifically relating to registered representatives. Prohibited activities, market manipulation, and ethical duties are examined. You’ll also learn more laws and regulations relating to business practices in finance.

16. Wrapping up

Time for cake and ice cream :-)