Question 1
A broker-dealer fails and cannot return customer assets. Which organization steps in to protect the customers' accounts?
The SIE exam format
The SIE has 75 scored multiple-choice questions and 5 unscored ones in 1 hour 45 minutes. Anyone 18 or older can take it, without a sponsoring firm.
| Questions | 75 scored plus 5 unscored, four choices each |
|---|---|
| Time | 1 hour 45 minutes |
| Passing score | 70, on FINRA's scaled score |
| Fee | $100 |
| Where | A Prometric test center or online |
The four sections
- Knowledge of Capital Markets: 12 questions (16%)
- Understanding Products and Their Risks: 33 questions (44%)
- Understanding Trading, Customer Accounts and Prohibited Activities: 23 questions (31%)
- Overview of the Regulatory Framework: 7 questions (9%)
What the SIE lets you do
On its own, nothing that needs registration. To register as a representative you also pass a qualification exam, such as the Series 7, and join a FINRA member firm. A passed SIE stays valid for four years.
Try 3 questions
Question 2
A bond with a 6% coupon trades at 80 (80% of par). What is its current yield?
Question 3
When must a broker-dealer file a Currency Transaction Report?
Next step
Questions people ask
Do I need a sponsoring firm to take the SIE?
No. FINRA opens the SIE to anyone aged 18 or older. You need a firm only for the qualification exam that follows it.
Are the unscored questions marked?
No. Five pretest questions are mixed in and do not count, but you cannot tell which they are, so answer every question.
Is there a penalty for guessing?
No. A wrong answer costs nothing, so never leave a question blank.