SIE Exam Practice Test 2023 with Study Guide [UPDATED] What Is the SIE Exam, Anyway? Initially, the information in the SIE (Securities Industry Essentials) exam was included in books that covered Series 6, Series 7, Series 22, and so on. The Financial Industry Regulatory Authority’s (FINRA’s) idea was to strip similar information from these exams and create the SIE exam.
What I’ve found is that besides stripping the information from these other exams, unfortunately for you and other exam takers, FINRA added a lot more information. What this means is that you will have to study a lot of information to answer 75 randomized questions.
SIE Exam Practice Test 2023
Time yourself so you’re always aware of how much time you have left to complete the exam. One way to do so is to figure out which question you need to 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 (or 1 minute and 13.8 seconds) to answer each question.
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 prior to 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, how the market functions, different regulatory agencies and their purposes, as well as regulated and prohibited practices.
|Exam Name||SIE (Securities Industry Essentials)|
|Number of Questions||75|
|Duration||1 hour and 45 minutes|
|Passing Score:||passing score for the SIE is 70 (on a scale of 0 to 100)|
|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 prior to 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 to have. The SIE exam itself 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 score of 70 percent or better 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. The sections later in this chapter 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:
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%|
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
Series 6 is the license required by most banks and insurance companies. 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
Series 7 is the license exam that most people will be taking. This is the license required by most broker-dealers. Series 7 allows you to sell equity securities, mutual funds, bonds, direct participation programs, options, and so on.
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 persons 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 as compared to publicly, the Series 82 is the exam you’ll need to pass. The Series 82 tests you on the knowledge needed to perform 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 not only have to pass the SIE exam but also 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 is required to prepare written and/or electronic communications that show an analysis of company securities and industry sectors.
Series 99: Operations Professional Exam
Persons who have 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
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.