The Securities Industry Essentials (SIE) exam is a test that was introduced by FINRA (Financial Industry Regulatory Authority) in 2018. This exam is designed to assess the basic knowledge of individuals who want to work in the securities industry. Passing this exam is a prerequisite for most other securities exams, including the Series 6, Series 7, and Series 63 exams.
So how many questions is SIE exam? Read more as we’ll explore the answer to that question and provide some additional information about the SIE exam.
How Many Questions Are On The SIE Exam
The SIE exam consists of 75 multiple-choice questions. Test takers are given two hours and thirty-five minutes to complete the exam. The passing score for the SIE exam is 70%, which means that you need to answer at least 53 out of 75 questions correctly in order to pass.
It’s worth noting that not all of the questions on the SIE exam are scored. Some of them are “pretest” questions that are being evaluated for use on future exams. These questions do not count towards your final score, but you won’t know which ones they are while taking the exam. Therefore, it’s important to treat every question on the test as if it counts towards your score.
The questions on the SIE exam cover a wide range of topics related to securities industry regulations and practices, including:
- Knowledge of products and their risks
- Understanding regulatory agencies
- Understanding prohibited practices
- Basic economic concepts
- Types of markets and trading strategies
What Is Covered On The SIE Exam
As mentioned above, there are several topics covered on the SIE exam that test takers will need to be familiar with in order to pass. Here’s a closer look at what’s covered:
Products – Test takers will need to have a solid understanding of different types of securities products such as stocks, bonds, mutual funds, exchange-traded funds (ETFs), options contracts, and variable annuities.
Regulatory Agencies – A key part of working in finance is understanding regulatory agencies such as FINRA itself or SEC (Securities and Exchange Commission). Test takers should be familiar with these organizations’ roles within financial regulation.
Prohibited Practices – Test takers will also need to know about prohibited practices such as insider trading or market manipulation.
Economic Concepts – Basic economic concepts like supply and demand curves or inflation rates may appear as well.
Types Of Markets And Trading Strategies – Finally, test takers should be familiar with different types of markets (such as primary versus secondary) along with trading strategies like buy-and-hold investing or dollar-cost averaging.
Tips For Preparing For The SIE Exam
Preparing for any standardized test can be stressful – especially when your career prospects depend on it! Here are some tips for studying effectively before taking your own Securities Industry Essentials Exam:
Utilize Study Materials – There are numerous study materials available online or through test prep companies like Kaplan or Pass Perfect. It’s crucial to use reliable sources while preparing so you don’t waste time studying incorrect information.
Take Practice Tests – Practice tests can help you get comfortable with taking an online multiple-choice format under timed conditions while also identifying areas where more review might be necessary.
It is recommended to take at least one practice test before each study session and then retake the test after completing a study session to track progress.
Break Up Study Sessions – It’s best to break up your study sessions into smaller chunks of time, as this helps prevent boredom and keeps you focused on the material at hand. Try studying for 45 minutes to an hour each day rather than cramming in long, intense study sessions.
Create A Study Schedule – Creating a study schedule can help keep you accountable by breaking down material into manageable sections over time rather than cramming everything just before an upcoming deadline.
According to experts the best time of the day to study is in the morning, when you are most alert and focused. Also, it is important to take breaks during study sessions to reset your focus and avoid exhaustion.
Hiring A Tutor – If possible, get an SIE exam tutor who can help you with your studies. A tutor can provide additional insights on topics and give personalized advice to help you understand the material better.
Get Plenty Of Rest – Finally, it’s important to make sure you get plenty of rest before taking the SIE exam. You should be well-rested and alert when tackling such an important test! Taking care of yourself physically and mentally is essential for exam success.
Conclusion
In conclusion, there are 75 multiple-choice questions on FINRA’s Securities Industry Essentials (SIE) Exam covering topics such as products & risks associated with those products; regulatory agencies; prohibited practices; basic economic concepts; types of markets & trading strategies among others.. Passing this test requires answering at least 53 out of these 75 correctly within two hours thirty-five minutes allotted time period.
By following some effective study tips like using reliable sources for study materials & practice tests; creating an organized study schedule can increase chances success during preparation leading up until taking this important step toward achieving one’s career goals.