SIE Exam Topics: A Complete Breakdown of Every Section

What's Actually on the SIE Exam?

The FINRA SIE exam content outline tells you exactly what will be tested — but reading it cold is like reading a phone book. This guide breaks down every section into plain English, tells you what matters most, and links to free study materials for each topic.

The SIE has 75 scored questions plus 5 unscored pilot questions (80 total). Here's how they're distributed:

Section 1: Knowledge of Capital Markets (16%)

This section builds the foundation. You need to understand who regulates what, how markets are structured, how the economy affects securities, and how new securities come to market.

Regulatory Bodies

Know the roles and powers of each regulator. The exam loves testing the differences between them.

• The SEC — the primary federal securities regulator. Enforces the Securities Act of 1933 and Securities Exchange Act of 1934.
• SROs (FINRA, MSRB, CBOE) — self-regulatory organizations that write and enforce industry rules under SEC oversight.
• Other Regulators — the Fed, OCC, FDIC, state regulators, and their specific jurisdictions.

Market Structure & Economics

• Market Participants — broker-dealers, market makers, exchanges (NYSE, Nasdaq), and ECNs.
• Federal Reserve & Monetary Policy — the Fed's three tools (open market operations, discount rate, reserve requirements) and how they affect interest rates and securities prices.
• Economic Indicators — GDP, CPI, unemployment, leading/lagging/coincident indicators, and the business cycle.

Securities Offerings

• The Offering Process — IPOs, the cooling-off period, red herrings, final prospectuses, and the roles of underwriters.
• Securities Offerings — also covers private placements (Reg D), exempt offerings, accredited investors, and Rule 144 resale restrictions.

Section 2: Understanding Products and Their Risks (44%)

This is the largest and most important section — nearly half the exam. You need to understand how each product works, its risks, its tax treatment, and who it's suitable for.

Equity Securities

• Common Stock — voting rights, dividends, stock splits, preemptive rights, and corporate actions.
• Preferred Stock, Rights & Warrants — cumulative vs. participating preferred, conversion parity, and dilution.

Debt Securities

• Bond Fundamentals — pricing, yields (current yield, YTM, YTC), and the inverse relationship between price and yield.
• Types of Bonds — corporate, Treasury, agency, and money market instruments.
• Municipal Bonds — GO vs. revenue bonds, tax-equivalent yield, and the unique regulatory framework (MSRB).

Use our Bond Yield Visualizer to see how bond prices and yields move inversely.

Options

• Options Basics — calls, puts, intrinsic vs. time value, max gain/loss for each position, and breakeven calculations.

This is the topic most test-takers struggle with. Use the Options Profit Calculator to practice until the concepts are automatic.

Packaged Products & Alternatives

• Investment Companies — mutual funds (open-end vs. closed-end), ETFs, UITs, and the 75-5-10 diversification rule.
• Variable Annuities & 529 Plans — accumulation vs. annuitization phase, AIR, tax-deferred growth, and surrender charges.
• DPPs, REITs & Hedge Funds — limited partnerships, the 75-75-30 REIT test, and accredited investor requirements for hedge funds.

Investment Risks

• Investment Risks — systematic vs. unsystematic risk, interest rate risk, credit risk, inflation risk, liquidity risk, and how each applies to different products.

Section 3: Trading, Customer Accounts & Prohibited Activities (31%)

This section tests your understanding of how trades work, how accounts are managed, and what's illegal.

Customer Accounts

• Account Types & Margin — cash vs. margin, Reg T (50%), maintenance margin (25%), joint accounts, fiduciary accounts, and POA.
• Retirement Accounts — Traditional vs. Roth IRA, 401(k), and contribution/distribution rules.
• Suitability & Reg BI — customer investment profiles, reasonable-basis suitability, and the care obligation.

Trading & Settlement

• Order Types — market, limit, stop, and stop-limit orders. Know when each is used.
• Trade Settlement — T+1 for equities and corporate bonds, T+0 for government securities, and ex-dividend date rules.

Prohibited Activities

• Market Manipulation & Insider Trading — churning, painting the tape, front-running, and the penalties for insider trading.
• Anti-Money Laundering — SARs ($5,000), CTRs ($10,000), CIP, the four pillars of an AML program, and the Bank Secrecy Act.

Section 4: Overview of the Regulatory Framework (9%)

The smallest section — but it's essentially free points if you memorize the key rules.

• Registration & Continuing Education — Form U4, Form U5, the regulatory element (computer-based training), and the firm element.
• Employee Conduct — disclosure obligations (10 business days for criminal, 30 calendar days for other U4 updates), outside business activities, and private securities transactions.

Use the Key Numbers Cheat Sheet to memorize every testable threshold and timeframe in this section.

How to Study by Section Weight

Don't study every section equally. Allocate your time based on exam weight:

Our free SIE course covers every topic listed above across 32 lessons. When you're ready to test your knowledge, the SIE QuizBuilder has over 3,000 practice questions organized by topic — so you can drill the exact areas where you need the most work.