FINRA Securities Industry Essentials (SIE) Practice Exam

FINRA Securities Industry Essentials (SIE) Practice Exam

The Securities Industry Essentials (SIE) Exam, administered by the Financial Industry Regulatory Authority (FINRA), is the initial licensing exam required for many entry-level securities industry positions in the United States. Passing the SIE demonstrates a basic understanding of the securities industry, its products, regulations, and ethical conduct.

Who Should Take the SIE Exam?

• Registered Representatives: Stockbrokers, investment advisors dealing with securities.
• Investment Banking Associates: Entry-level professionals in investment banking firms.
• Financial Advisors: Professionals providing financial advice and recommendations.
• Securities Analysts: Individuals researching and analyzing securities for investment purposes.
• Anyone New to the Securities Industry: Those seeking a foundational understanding of the industry to start their careers.

There are no formal prerequisites for taking the SIE Exam. However, a basic grasp of financial markets and investment concepts would be beneficial.

Exam Details

• Number of Questions: 75
• Length of Time:  1 hour and 45 minutes
• Registration Fee: USD 60
• Passing Score: 70 (on a scale of 0 to 100)
• Exam Language English

Course Outline

The FINRA Securities Industry Essentials (SIE) Exam covers the following topics - 

1. Knowledge of Capital Markets 16% 

• Regulatory Entities, Agencies and Market Participants 
• Market Structure
• Economic Factors
• Offerings

2. Understanding Products and Their Risks 44% 

• Products
• Investment Risks 

3. Understanding Trading, Customer Accounts and Prohibited Activities 31% 

• Trading, Settlement and Corporate Actions  
• Customer Accounts and Compliance Considerations
• Prohibited Activities

4. Overview of the Regulatory Framework 9%

• SRO Regulatory Requirements for Associated Persons
• Employee Conduct and Reportable Events