Last Updated on May 22, 2024
SIE Exam Practice Test 2024 with Study Guide [UPDATED] What Is the SIE Exam, Anyway? Initially, the SIE (Securities Industry Essentials) exam information was included in books that covered Series 6, Series 7, Series 22, and so on. The Financial Industry Regulatory Authority’s (FINRA) idea was to strip similar information from these exams and create the SIE exam.
I’ve found that besides stripping the information from these other exams, unfortunately for you and other exam takers, FINRA added a lot more information. This means you will have to study a lot of information to answer 75 randomized questions.
SIE Exam Practice Test 2024
Time yourself to know how much time you have left to complete the exam. One way to do so is to figure out which question you must be up to at the end of each 15 minutes; use that as a benchmark to keep track of your progress. You have one hour and 45 minutes to complete the exam. You have to answer 85 questions (10 don’t count toward your score). This gives you roughly 1.23 minutes (1 minute and 13.8 seconds) to answer each question.
SIE Exam
The SIE is an introductory-level exam designed to test your basic knowledge of the securities industry and is open to anyone age 18 or older. Fortunately, association with a securities firm is not required — individuals may take the SIE exam before or after being hired by a firm.
You will need to know certain terminology used in the securities industry, different securities products, how the market is structured and functions, different regulatory agencies and their purposes, and regulated and prohibited practices.
| Detail | Description |
|---|---|
| Exam Name | SIE (Securities Industry Essentials) |
| Number of Questions | 75 |
| Format | Multiple Choice |
| Duration | 1 hour and 45 minutes |
| Passing Score | Passing score for the SIE is 70 (on a scale of 0 to 100) |
| Exam Cost | $80 |
| Age Requirements | 18 years or older |
| Citizenship | US and Others |
Since unsponsored individuals are allowed to take the exam, you can take a step toward becoming a securities professional before being hired.
The exam’s purpose is to protect the investing public by ensuring that the individuals who sell or give information about securities have mastered the skills and general knowledge that competent practicing representatives need. The SIE exam is a computer-based exam given at Prometric (www.prometric.com/finra) test centers throughout the United States.
The 75-question exam, administered by the FINRA, is 105 minutes in duration. A 70 percent or better score gets candidates a passing grade and puts big smiles on their faces. After passing the SIE, the results remain valid for four years from the date you pass. Later in this chapter, the sections explain the setup of the SIE Exam and give a rundown of how to register for the exam.
SIE Exam Questions
The sections and question count are as follows:
| Topic | Number of Questions | Percent of Exam |
|---|---|---|
| Knowledge of capital markets | 12 | 16% |
| Understanding products and their risks | 33 | 44% |
| Understanding trading, customer accounts, and prohibited activities | 23 | 31% |
| Overview of the regulatory framework | 7 | 9% |
| Total | 75 | 100% |
Each of these topics falls under multiple areas of study. For example, to correctly answer questions that address the topic of handling customer accounts, you have to know enough about different types of stocks, bonds, and so on to be able to guide your customers, including which investments are more beneficial to retirees and which work better for investors who are just entering the workforce.
Series 6: Investment Company and Variable Products Representative Exam
Most banks and insurance companies require Series 6 licenses. This license allows the holder to sell products such as mutual funds, variable annuities, and variable life insurance (along with having an insurance license).
Series 7: General Securities Representative Exam
Most people will take Series 7, the license exam required by most broker-dealers. Series 7 allows you to sell equity securities, mutual funds, bonds, direct participation programs, options, and more.
Series 22: DPP Representative Exam
If you’re planning on focusing your career on selling direct participation programs (DPPs), Series 22 is the one for you. This license allows you to solicit and sell limited partnership interest in DPPs like real estate programs, oil and gas programs, equipment leasing programs, and so on.
Series 57: Securities Trader Exam
The Series 57 license allows holders to execute trades in securities. Typically, a Series 57––licensed individual works in the trading department, executing trades for individuals or firms.
Series 79: Investment Banking Representative Exam
The Series 79 Investment Banking Representative exam allows holders to work in the investment banking realm. As such, the holders’ functions may include advising or facilitating equity or debt securities offerings through public offerings, private placements, and mergers and acquisitions.
Series 82: Private Securities Offerings Representative Exam
If you’re planning on selling securities privately rather than publicly, the Series 82 exam is the one you’ll need to pass. It tests your knowledge of the functions of a private securities offerings rep, including the solicitation and sale of Regulation D private placement securities as part of a primary offering.
Series 7 + Series 86 + Series 87: Research Analyst Exam
If you love taking exams, this is the one for you. You have to pass the SIE exam, the Series 7, Series 86, Series 87, and either the Series 63 or Series 66 — yikes! However, if you want to be a research analyst, this is the route you’ll need to go. A research analyst must prepare written and/or electronic communications that analyze company securities and industry sectors.
Series 99: Operations Professional Exam
Persons with a Series 99 license have proved that they have the knowledge needed to perform the critical functions of an operations professional. As such, their functions include client onboarding (welcoming new clients, addressing client concerns, making sure clients understand services available to them, and so on), receipt and delivery of securities and funds, account transfers, reinvestment and disbursement of funds, and so on.
SIE Exam Official Practice Test and Study Guide
Securities Industry Essentials (SIE) Exam Content Outline
To see the complete outline of what is covered, go to www.finra.org
If you have other questions, contact the FINRA Support Team at 240-386- 4040 or visit www.finra.org/industry/qualification-exams.