SIAA Fundamentals of Securities study guide
SIAA Fundamentals of Securities · Work through your exam, one topic at a time.
The SIAA Fundamentals of Securities credential is an entry-level qualification for people starting careers in the securities industry, including sales and advisory roles, operations and back-office staff, compliance and risk assistants, and graduates or career changers who need a structured grounding in how markets work. It is designed to test whether a candidate understands the products, processes and rules that underpin everyday securities business rather than deep quantitative analysis. The SIAA Fundamentals of Securities study guide has 8 sections and about 2,967 words.
01Capital Markets and Market Participants
Capital markets move savings from surplus units (households, pension funds) to deficit units (companies, governments) and provide secondary liquidity so investors can exit without disturbing the issuer. Candidates must distinguish the primary market (new issuance: IPOs, follow-on offerings, bond syndications - cash flows to the issuer) from the secondary market (trading of already-issued securities - cash flows between investors).
367 words, about 2 min02Equity Securities
Equity represents an ownership claim: residual earnings after all obligations, voting rights at general meetings, and a claim on liquidation proceeds that ranks last. Candidates must know common (ordinary) shares versus preference shares (fixed dividend, priority over common, often non-voting, sometimes cumulative or participating).
343 words, about 2 min03Fixed Income Securities
Fixed income covers government bonds, corporate bonds, municipal bonds, agency debt and money-market instruments. Candidates must know the price-yield inverse relationship, the difference between coupon rate and yield to maturity , and clean versus dirty price (accrued interest).
325 words, about 2 min04Derivatives and Alternative Investments
Forwards, futures, options and swaps. Know that a forward is a private, customised obligation to trade at a set price on a future date, while a futures contract is standardised, exchange-traded and daily-marked-to-market through a clearing house.
351 words, about 2 min05Investment Funds and Asset Management
Know open-end funds (issue and redeem continuously at NAV), closed-end funds (fixed share count, trade at premiums or discounts to NAV), unit investment trusts, exchange-traded funds (intraday trading, creation/redemption in kind, generally low cost) and money market funds (stable NAV, short-dated instruments). Understand mutual fund pricing at net asset value = (assets − liabilities) / shares outstanding, struck at a set valuation point.
327 words, about 2 min06Trading, Clearing and Settlement
Market orders execute immediately at the best available price but carry price risk; limit orders set a maximum buy or minimum sell price but may not fill. Know stop and stop-limit orders, time-in-force instructions (day, GTC, IOC, FOK) and the meaning of best execution .
344 words, about 2 min07Regulation
Objectives are investor protection, market integrity, financial stability and confidence. Know the regulatory toolkit: licensing and registration, disclosure requirements, conduct rules, capital adequacy, market-abuse prohibitions and product intervention.
288 words, about 1 min08Ethics and Compliance
Ethics is more than legality: conduct can be legal yet unethical. Know the standard pillars - integrity, objectivity, competence, confidentiality, fairness and professionalism - and the duty to place client interests above personal or firm interests.
622 words, about 3 min