SIE case studies

SIE · Put your knowledge to work in context.

The Securities Industry Essentials (SIE) is a FINRA qualification exam that covers the foundational knowledge underpinning the U.S. securities industry. FINRA - a not-for-profit self-regulatory organization with an 85-year history - lists the SIE alongside other qualification exams such as the Series 7 in the Registration, Exams & CE section of its website, and directs candidates to register and find exam details there. The SIE is generally the first step for people working toward, or exploring, a career as a registered representative: it tests whether a candidate understands how markets function and how securities businesses are regulated, rather than the firm-specific or product-specific duties that a representative-level exam such as the Series 7 covers. The SIE case studies are 5 cases and about 2,987 words.

The Follow-On Offering: Who Actually Gets the Cash?

Ridgeway Components, Inc. has 40,000,000 shares outstanding and trades on Nasdaq at 22.00.

557 words, about 3 min 2

Highest Yield, No Risk, and a 5% Income Need

Denise, 63, has 600,000 in a taxable account and needs 30,000 a year of spendable income. Her marginal bracket is 32% federal, and she lives in a state that does not tax in-state municipals.

587 words, about 3 min 3

The Stop Order That Filled $0.90 Below Its Trigger

the NBBO for Kestrel Logistics is 48.40 bid / 48.62 ask. Okafor owns 1,000 shares bought at 31.00 and is leaving for a two-month trip.

601 words, about 3 min 4

$21,000 of Commissions on a $250,000 Income Account

Over 14 months, RR Patel has traded a retired schoolteacher's 250,000 account whose stated objective is 'income and capital preservation.' The account generated 21,000 in commissions and markups and 3,000 in margin interest; average monthly equity was about 200,000 and total purchases over the period were 1,400,000. Patel never obtained written discretionary authority, but after the client said 'you know what's best for me,' he began selecting securities and position sizes without calling her.

560 words, about 3 min 5

A Video, a Tip, and Two Deposits Just Under $10,000

At a small broker-dealer, three things happen in one week. (1) An RR posts a video to a public channel saying 'our growth fund beat the S&P 500 by 9% last year - link in bio,' with no disclosure of fees and no principal approval.

682 words, about 3 min