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00:00 SIE Exam Playlist 1 https://youtube.com/playlist?list=PLK1IazV_JQbF2DcGDNhX4cFom7TWDByTVu0026si=ifocBzIijNJXQNnk SIE Exam Playlist 2 https://youtube.com/playlist?list=PLK1IazV_JQbGAPytEr-d5XAynJfdJPr2mu0026si=WiYMTssGpsplZK8_ 04:35 PURPOSE OF THE EXAM The Securities Industry Essentials (SIE) exam assesses a candidate’s basic knowledge of the securities industry. The exam focuses on industry terminology, securities products, the structure and function of the markets, regulatory agencies and their functions, and regulated and prohibited practices. For more information about the SIE, see FINRA Rule 1210.03. STRUCTURE OF THE EXAM The exam consists of 75 multiple-choice items, and each item consists of four answer choices. The allocation of test items is as follows: 5:50 1 Knowledge of Capital Markets 12 questions (16%) https://youtu.be/sTzDNeKImaw?si=8S1ey83u-qvEPp_w 10:00 2 Understanding Products and Their Risks 33 questions (44%) https://youtu.be/KegLDJJKMbc?si=AiA-AvhNVT1e6Upq 13:07 3 Understanding Trading, Customer Accounts and Prohibited Activities 23 questions (31%) https://youtu.be/zprC50EdmGY?si=wb-b8IKu-TUNF9gW 16:25 4 Overview of the Regulatory Framework 7 questions (9%) https://youtu.be/FzywRVsSu4g?si=5ENdXzKJ3um51yZk TOTAL 75 questions or performance opportunities (100%) Much of the content on the SIE outline is based on common securities industry knowledge and general concepts. This knowledge is often not based on any one rule or regulation. Examples include basic characteristics of investment products such as the inverse relationship between the price and yield of a bond https://youtu.be/RJxlCMQPM4M?si=4lWEub1IKRY6bzSc and the rights of a common stockholder https://youtu.be/Ceozzs5uiPY?si=H4Wt-uyCUySYwU_D. Alternately, some knowledge is based on specific rules and regulations. Examples include the reporting requirements for a Suspicious Activity Report (SAR) https://youtu.be/LbFd5Giomi4?si=08VQOGs4_5FUVLJe and the Uniform Application for Securities Industry Registration or Transfer (Form U4) filing requirements. The exam will assess candidates on both rule- and non-rule-based industry knowledge. Several federal laws and regulations serve as the foundation for some of the knowledge contained in this outline. The content upon which the outline is based includes but is not limited to rules and regulations under the following Acts: The Securities Act of 1933 Primary Market https://youtu.be/TId9UhMN0_s?si=0P9qFID29iErUVw4 The Securities Exchange Act of 1934 Secondary Market https://youtu.be/kEoGI34sID8?si=ux0J1zmCHv6kgtZq The Investment Company Act of 1940 Mutual Funds https://youtu.be/_RY19tM1kEY?si=OZ-QnfWxYoXBntnA The Investment Adviser Act of 1940 Investment Advisors and Investment Advisor Representatives ADMINISTRATION OF THE EXAM The exam is administered via computer. A tutorial on how to take the exam is provided prior to taking the exam. Each candidate’s exam includes 10 additional, unidentified pretest items that do not contribute toward the candidate's score. The pretest items are randomly distributed throughout the exam. Therefore, each candidate’s exam consists of a total of 85 items (75 scored and 10 unscored). There is no penalty for guessing. Therefore, candidates should attempt to answer all items. Candidates will be allowed 1 hour and 45 minutes to complete the SIE exam. All candidate test scores are placed on a common scale using a statistical adjustment process known as equating. Equating scores to a common scale accounts for the slight variations in difficulty that may exist among the different sets of exam items that candidates receive. This allows for a fair comparison of scores and ensures that every candidate is held to the same passing standard regardless of which set of exam items they received. Candidates are not permitted to bring reference materials to their testing session. Severe penalties are imposed on candidates who cheat or attempt to cheat on FINRA-administered exams. Please visit www.finra.org for additional details