SIE exam prep
Pass the SIE exam
Plain-English lessons on every topic in FINRA's Securities Industry Essentials outline, 216 flashcards, 315 original practice questions with explanations, and 2 full-length timed exams that score you by section, just like the real one.
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One payment. No time limit. Not affiliated with FINRA.
The exam
75 questions, 1 hour 45 minutes, 70 to pass
The SIE costs $100 to take and covers four sections. The course follows the same outline, so you spend your time where the points are.
| Section | Weight | Questions | Course modules |
|---|---|---|---|
| 1. Knowledge of Capital Markets | 16% | 12 | Module 1, Module 2 |
| 2. Understanding Products and Their Risks | 44% | 33 | Module 3, Module 4, Module 5, Module 6, Module 7 |
| 3. Understanding Trading, Customer Accounts and Prohibited Activities | 31% | 23 | Module 8, Module 9, Module 10 |
| 4. Overview of the Regulatory Framework | 9% | 7 | Module 11 |
Source: FINRA, Securities Industry Essentials exam, checked November 2026.
What you get
11 modules on the official outline
- Module 1: The Capital Markets and Who Regulates Them. Learn what the capital markets do, which organizations write and enforce the rules, who the main participants are, and how the different kinds of markets match buyers with sellers.
- Module 2: Economic Factors and Securities Offerings. See how monetary policy, fiscal policy and the business cycle move markets, then follow a new security from the registration statement to the final sale, including the offerings that are exempt from registration.
- Module 3: Equity Securities. Understand what it means to own a company: common and preferred stock, shareholder rights and voting, dividends and splits, rights, warrants and ADRs, penny stock rules, and the basic numbers used to value a stock.
- Module 4: Debt Instruments: Bonds, Government Securities, Munis and Yields. How bonds are built, priced and taxed, from corporate debentures to Treasury bills and municipal bonds. You will learn to calculate current yield, approximate yield to maturity and call, and tax-equivalent yield.
- Module 5: Options: Calls, Puts and Basic Strategies. What calls and puts are, who has rights and who has obligations, and how to value an option. You will work through breakeven, maximum gain and maximum loss for the basic strategies, then see how the OCC, the ODD and exercise and assignment fit together.
- Module 6: Packaged Products and Municipal Fund Securities. Mutual funds, closed-end funds, UITs, exchange-traded products and variable annuities, plus 529 plans, ABLE accounts and local government investment pools. You will calculate NAV, public offering price and sales charges, and learn how breakpoints, letters of intent and rights of accumulation lower costs.
- Module 7: Alternative Investments and Investment Risks. How direct participation programs, REITs and hedge funds work, the main kinds of investment risk you will be asked to name, and the tools investors use to manage them.
- Module 8: Trading, Returns, Settlement and Corporate Actions. How orders are entered and filled, what it means to be long or short, how investors measure returns and cost basis, when trades settle and who receives a dividend, and how corporate actions such as splits, tender offers and rights offerings affect shareholders.
- Module 9: Customer Accounts and Compliance. How customer accounts are opened and registered, the main account types, the anti-money laundering rules every firm must follow, recordkeeping and privacy, the rules for communicating with the public, and the duties that apply when you make a recommendation.
- Module 10: Prohibited Activities. The conduct that gets firms and representatives fined, suspended or barred: market manipulation, insider trading, abuses inside customer accounts, selling away, and improper money and gift arrangements with customers.
- Module 11: The Regulatory Framework for People. How individuals enter, stay in and leave the securities industry: registration and Forms U4 and U5, statutory disqualification, qualification exams and continuing education, conduct rules, reportable events, complaints and how disputes are resolved.
Every module ends with exam tips and a 15-question quiz with explanations. Flashcards cover every key term, and the two practice exams mix all four sections at the real exam's weights and time limit.
Free lesson
Why capital markets exist and the role of the SEC
A business that wants to build a factory, a city that needs a new water system and a national government that must cover a budget gap all have the same problem: they need money they do not have yet. Capital markets solve that problem by connecting those who need money (issuers) with those who have savings to invest (investors). The issuer gets cash to use today. In return, the investor gets either a share of ownership (equity, such as common stock) or a promise of repayment with interest (debt, such as a bond).
Markets only work if investors trust them. If buyers believed that companies routinely lied about their finances, or that insiders rigged prices, they would keep their savings out of the market and the cost of raising money would rise for everyone. Securities regulation exists to protect that trust. Most of it rests on one idea: full and fair disclosure. The government does not decide whether an investment is good. It requires issuers and firms to tell the truth and punishes fraud, then lets investors make their own choices.
The Securities and Exchange Commission
The Securities and Exchange Commission (SEC) is the federal government agency at the top of the U.S. securities regulatory system. It was created by the Securities Exchange Act of 1934. The SEC writes rules, reviews filings, inspects firms, brings civil enforcement actions and oversees the self-regulatory organizations you will meet in the next lesson. Its commissioners are appointed by the President and confirmed by the Senate.
The SEC has civil authority. It can seek fines, return of ill-gotten gains (disgorgement), bans from the industry and court orders. It cannot send anyone to prison on its own. When conduct is criminal, the SEC refers the case to the Department of Justice, which can prosecute.
The main federal securities laws
You will see these laws throughout the course. For now, learn what each one is mainly about:
| Law | Main focus |
|---|---|
| Securities Act of 1933 | New issues (the primary market): registration and a prospectus for public offerings, plus antifraud rules for sales of securities |
| Securities Exchange Act of 1934 | Trading after issuance (the secondary market): created the SEC, regulates exchanges, broker-dealers, insider trading, margin credit and reporting by public companies |
| Investment Company Act of 1940 | Mutual funds and other investment companies |
| Investment Advisers Act of 1940 | People and firms paid to give investment advice |
| Securities Investor Protection Act of 1970 | Created SIPC, which protects customers when a broker-dealer fails |
A useful memory hook: the 1933 Act is about the paper (registering a new security) and the 1934 Act is about the people and places (firms, exchanges and trading).
What the SEC does not do
The SEC never approves or endorses a security. When a company files a registration statement, the SEC reviews it for complete disclosure, but it does not judge whether the investment is wise or whether the price is fair. Every prospectus must say this plainly, and any statement suggesting that the SEC has approved an offering is itself a violation. Exam questions often test this point with a representative who tells a customer that a new stock must be safe because the SEC cleared it. That statement is wrong and prohibited.
The SEC also does not run day-to-day oversight of every firm alone. Congress designed a layered system. The SEC sits at the top. Below it, self-regulatory organizations write detailed rules for their members, examine them and discipline them. Alongside both, other federal agencies and the states have their own roles. Understanding who does what is a core skill for the exam and for your career.
Putting it together
Picture the system as three layers. The first is the law passed by Congress. The second is the SEC, which turns the law into specific rules and supervises the industry. The third is the self-regulatory organizations, which add their own rules and police their members day to day. When you read an exam question about who has authority over a situation, start by asking which layer the question is really about.
Try three practice questions
Enroll
SIE Exam Prep, $49 once
- 11 modules and every lesson on FINRA's outline
- 216 flashcards
- 315 original practice questions with explanations
- 2 timed, full-length practice exams scored by section
- No time limit, any device
Already enrolled? Email me my access link.
Independent prep from MCC Solutions. Not affiliated with or endorsed by FINRA. SIE and Securities Industry Essentials are trademarks of FINRA.
FAQ
Questions before you enroll
What is the SIE exam?
The Securities Industry Essentials exam is FINRA's entry-level exam for people who want to work in the securities industry. It has 75 scored questions plus 5 unscored ones, you have 1 hour 45 minutes, and the passing score is 70. Anyone 18 or older can take it, without a sponsoring firm.
What does the course include?
11 modules that follow FINRA's content outline, 216 flashcards, 315 original practice questions with explanations, and 2 full-length timed practice exams scored by section like the real one.
Is this course official or endorsed by FINRA?
No. It is independent prep written by MCC Solutions. SIE and Securities Industry Essentials are FINRA's marks. The questions are original practice items, not real exam questions.
How current is it?
It was written in November 2026 against FINRA's current content outline and includes recent rule changes, such as FINRA's gift limit rising to $300. Exams test a new rule only after it takes effect, so check FINRA's site before your test date.
How long do I have access?
No time limit. Your access link works on any device, and progress is saved in the browser on each device you use.
Does passing the SIE let me sell securities?
Not by itself. To be registered you also need a representative-level exam, such as the Series 7, and sponsorship by a member firm. The SIE stays valid for four years while you get there.