FINRA SIE

Exam information

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.

Characteristics, features, benefits, and risks of preferred stock. Interest rates, their influence on the financial markets, and how they impact preferred stock market prices are additionally covered.

The foundations of debt securities, which are the most commonly traded investment in the financial markets. Topics covered include interest rates, bond characteristics, the debt markets, yields, and benefits, and risks.

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.

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.

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.

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.

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.

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.

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

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.

The essentials of the secondary market, which is governed by the Securities Exchange Act of 1934. Specific stock markets, participants in the financial markets, order types, and applicable regulations are all covered.

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.

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

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.