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