SIE Flashcards
What does FINRA stand for?
Financial Industry Regulatory Authority
True or False: The SIE Exam is a prerequisite for taking other qualification exams.
True
What is the primary purpose of the SIE Exam?
To assess a candidate’s basic knowledge of the securities industry.
Fill in the blank: The SIE Exam consists of _____ questions.
75
What is the passing score for the SIE Exam?
70%
Multiple Choice: How long is the SIE Exam?
1 hour and 45 minutes
What types of products are covered in the SIE Exam?
Stocks, bonds, mutual funds, and options
True or False: The SIE Exam can be taken by anyone, regardless of employment status.
True
What is the minimum age requirement to take the SIE Exam?
18 years old
Fill in the blank: The SIE Exam is administered by _____.
FINRA
Multiple Choice: What is NOT a topic covered in the SIE Exam?
Advanced trading strategies
What is the validity period of the SIE Exam results?
There is no expiration; results do not expire.
True or False: Candidates must be sponsored by a FINRA member firm to take the SIE Exam.
False
What is the format of the SIE Exam?
Multiple-choice questions
Fill in the blank: The SIE Exam is designed for _____ candidates.
entry-level
Multiple Choice: Which of the following is a key function of broker-dealers?
Executing trades for clients
What is the role of the SEC in relation to the SIE Exam?
The SEC oversees the securities industry, including FINRA.
True or False: The SIE Exam includes questions on ethical practices.
True
What does ‘suitability’ refer to in the context of securities transactions?
Ensuring that investment recommendations meet the client’s needs.
Fill in the blank: The SIE Exam is intended to help firms identify _____ candidates.
qualified
Multiple Choice: Which of the following is a type of investment risk?
Market risk
What is a mutual fund?
An investment vehicle that pools money from multiple investors to purchase securities.
True or False: The SIE Exam tests knowledge of financial statements.
True
What does the term ‘liquidity’ refer to?
The ease of converting an asset into cash without affecting its price.
