What Topics Are Covered on the SIE Exam?

📘 What Topics Are Covered on the SIE Exam?

The Securities Industry Essentials (SIE) Exam is the first step toward becoming a licensed financial professional. It tests your foundational knowledge of the securities industry, and passing it is required before taking more specialized FINRA exams like the Series 6, 7, or 65.

Let’s explore exactly what the SIE covers.

🧠 Overview of the SIE Exam

• Total Questions: 75 multiple-choice
• Time Limit: 105 minutes
• Passing Score: 70%
• No sponsorship required — anyone 18+ can take the exam
• Validity: SIE results are valid for 4 years

📚 Key Topics Covered on the SIE Exam

The exam is divided into four main sections, each with a specific weight in scoring:

1️⃣ Knowledge of Capital Markets (12 questions – 16%)

Covers the structure and function of the financial markets, including:

• Primary vs. secondary markets
• Types of market participants (broker-dealers, investment advisers, issuers)
• Regulatory entities (SEC, FINRA, MSRB, etc.)
• Economic indicators and market influences
• Offerings: public, private, IPOs

2️⃣ Understanding Products and Their Risks (33 questions – 44%)

This is the largest section and includes:

• Stocks (common and preferred)
• Bonds (corporate, municipal, government)
• Mutual funds, ETFs, and investment companies
• Options basics (calls and puts)
• Annuities and insurance products
• Risk types: market risk, interest rate risk, credit risk, liquidity risk

3️⃣ Understanding Trading, Customer Accounts, and Prohibited Activities (23 questions – 31%)

Focuses on the day-to-day operations of securities firms:

• Order types (market, limit, stop)
• Trade settlement and confirmation
• Margin accounts and cash accounts
• Anti-money laundering (AML) laws
• Prohibited practices (insider trading, manipulation, churning, etc.)
• Customer communications and disclosures

4️⃣ Overview of Regulatory Framework (7 questions – 9%)

Covers rules and ethics that guide industry behavior:

• FINRA and SEC regulations
• Role of SROs (Self-Regulatory Organizations)
• Know Your Customer (KYC) and Suitability
• Registration and continuing education requirements
• Reporting violations and whistleblower protections

🧭 How to Prepare Effectively

• 🎯 Start Early: Give yourself 3–4 weeks of prep time
• 📘 Use Updated Materials: The SIE exam is regularly updated
• 🧪 Take Practice Tests: Simulate the real test format
• 📊 Focus on the Heaviest Sections: Product knowledge carries the most weight
• 🧠 Don’t Just Memorize: Understand how concepts apply in real scenarios

🚀 Begin Your Journey in Finance Today

The SIE Exam is your entry point to the financial industry — and the foundation for every other FINRA license.

👉 Start preparing today at finra-exam-mastery.com with expert study guides, realistic practice exams, and everything you need to pass on your first try.