Stephen Cress - SIE Exam Prep 2021-2022: SIE Study Guide with 300 Questions and Detailed Answer Explanations for the FINRA Securities Industry Essentials Exam (Includes 4 Full-Length Practice Tests)

SIE Exam Prep 2021-2022

SIE Study Guide with 300 Questions and Detailed Answer Explanations for the FINRA Securities Industry Essentials Exam (Includes 4 Full-Length Practice Tests)

Stephen Cress

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Introduction: The SIE Exam

D eveloped by FINRA , the Security Industry Essentials (SIE) Exam is an aptitude test that assesses the knowledge and skills of potential security experts. The test costs $60, comprises 75 MCQs (multiple choice questions), and lasts for 1 hour and 45 minutes.

The minimum age requirement to take the SIE exam is 18 years, irrespective of previous experience. The test scores remain valid for 4 years. Passing the SIE exam is one out of two important prerequisites to become a registered member in the security industry. Additionally, you must pass the qualification test for your prospective business.

The SIE consists of the following sections:

• Knowledge of Capital Markets 12 questions; 16% of the exam
• Understanding Products and Their Risks 33 questions; 44% of the exam
• Understanding Trading, Customer Accounts, and Prohibited Activities 23 questions; 31% of the exam
• Overview of Regulatory Framework 7 questions; 9% of the exam.

SIE Exam details

• Number of Items: 75
• Format: Multiple choice
• Duration: 105 minutes
• Passing Score: 70
• Cost: $60
• Recommended study time: 40 to 60 hours

You need a lot of studying and preparation under your belt to earn a passing score of 70.

Test-Taking Tips

Each time we are asked about how to pass the SIE exam, our response remains unchanged. Effective preparations for the SIE exam involve a combination of quality materials and an absolute commitment to studying. Though we are aware that each candidate is unique and there will be minor variations, there are a few tested and proven methods that are effective regardless of your study pattern.

We understand how overwhelming the SIE exam can be. For those who are looking to improve their performance during the test, this book is a helpful study tool.

If you have met someone who is exceptionally good at taking tests, you will understand how frustrating it can be. Especially when you have spent hours studying for the test, only for them to waltz through the process like its nothing at all. This might be confusing. You might even begin to doubt yourself, asking how they could perform excellently when it comes to writing a test. How did they study? Which study materials did they use?

By now, you should be aware of the fact that performing well during tests requires skill. It is a strategic process where in-depth knowledge of the material is not exactly necessary. In simpler terms, it involves approaching the test strategically. In reality, there are similarities between most standard multiple-choice exams and there are a few, but effective pointers to beat the test. The goal is to make sure that you become one of those individuals who pass the SIE exam with good scores.

Take it one at a time and pay attention to details . While this might seem straightforward, you will be surprised at the number of questions that people overlook because they hastily pick an answer without reading the question properly. It is an acquired reflex. We have been conditioned to read until we discover a tiny detail that points us towards the answer. We hold on to that tiny relevant detail and we just move with it.

This strategy is often effective and this is the reason why it is popularly used by many people. However, this method might prove to be the difference between passing and failing an exam, particularly one like the SIE. Hence, avoid self-sabotage. Attempt the questions carefully and scrutinize every word before selecting an answer. To ensure that theres no room for error, look through the questions again. With this, you can be sure that you understand the questions completely.

Rather than focusing on what you have no idea about, focus on what you know using the elimination method. The beauty of multiple-choice tests is that you have a chance to eliminate incorrect answers. For instance, if there are four options and you are sure that two options are incorrect, strike them out. This leaves you with 2 options and the odds are in your favour. If one out of the two options left is all of the above, select that. It is most likely the correct option.

Alternatively, if after eliminating 2 options, you are left with one option that includes none of the above, do not pick this option. Once more, statistics show that this is the wrong option. The correct answer is usually included by exam writers. Except you are absolutely certain that the correct option is not included, you should not assume that its not listed

One other option to look out for when writing the SIE exam is Not enough to determine. Once this option appears in the multiple-choice exam, do not select it. The information provided is ALWAYS sufficient. In reality, the information provided to answer the questions is more than enough. Regard this as a bonus option and strike it out immediately. This leaves you with 3 options to select from, increasing your odds of selecting the correct option.

Stick to Your Answer . Changing your answer leaves room for self-doubt. As long as you have carefully looked through the question before deploying the elimination method to select the most suitable answer, the odds are in your favour. Self-doubt eliminates all the logic from the method, reducing your final answer to a mere guess. What this means is that, when you change your answer, you are likely to select the wrong one, and this will reduce your scores. The most important thing to note here is to use the method and stick to your answer. Theres a reason why you chose that option.