TheorySIE Study Guide
Study for the SIE with exam topics, practice questions, a free PDF, video walkthrough and timed mock exam links.
How to study for SIE
- Read the topic list so you know what the exam is likely to cover.
- Answer the free practice questions and read every explanation.
- Download the PDF for offline review.
- Use timed mock exams when your untimed practice feels comfortable.
Topics to review
- The core topics and terminology you'll be tested on
- Rules, standards and best-practice procedures
- Real-world scenarios and how to respond
- Common mistakes and how to avoid them
Try SIE questions now
Q1When a corporation announces that it is seeking additional equity capital through a sale of additional authorized but unissued shares,
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✓ Correct answer: this is a primary distribution
The ‘trick’ with this question is that anytime a company is selling NEW previously unissued shares from their Authorized shares maximum, those shares are NEW ---- Primary distribution means the shares being sold are NEW, never before issued, not previously owned by anyone.
Q2Which of the following is TRUE regarding the primary market?
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✓ Correct answer: Issuer transactions occur in the primary market.
The primary market is where securities are sold to the investing public through issuer transactions. It is regulated by the Securities Act of 1933. The NYSE is an example of a secondary market where price is determined by supply and demand.
Q3When did the Congress establish the Securities & Exchange Commission (SEC)?
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✓ Correct answer: 1934
Congress established the Securities & Exchange Commission (SEC) in 1934.
Q4The smallest portion of an underwriting spread is the:
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✓ Correct answer: Manager's fee
The manager's fee is the amount received by the managing underwriter for each security sold by any brokerage firm involved in the offering. The manager's fee is the smallest portion of the underwriting spread.
Q5Which of the following is a theory in which the interest rate differential between two countries is equal to the differential between the forward exchange rate and the spot exchange rate?
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✓ Correct answer: Interest rate parity
Interest rate parity (IRP) is a theory in which the interest rate differential between two countries is equal to the differential between the forward exchange rate and the spot exchange rate.
Q6Which of the following is the formula to determine "exercise settlement amount"?
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✓ Correct answer: difference between the "aggregate exercise price" and the "aggregate current index value"
Rule no 4210. Margin requirements<br/><br/>The difference between the aggregate exercise price and the "aggregate current index value" is referred to as the "exercise settlement amount" (as such terms are defined in the pertinent By-Laws of The Options Clearing Corporation).
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