SIE Exam

Introduction 1 What You’ll Find 1 Beyond the Book 2 Where to Go for Additional Help 2 Part 1: Tackling the Questions 3 Chapter 1: Securities Underwriting: The Process and the Team Players 5 The Problems You’ll Work On 5 What to Watch Out For 5 1–35 Bringing New Issues to Market 6 36–43 Types of Securities Offerings 10 44–61 Exempt Securities and Transactions 11 Chapter 2: Equity Securities: Corporate Ownership 15 The Problems You’ll Work On 15 What to Watch Out For 15 62–97 Common Stock 16 98–125 Preferred Stock 20 126–141 ADRs, Rights, and Warrants 24 Chapter 3: Debt Securities: Corporate and US Government Loans 27 The Problems You’ll Work On 27 What to Watch Out For 27 142–178 Types of Bonds 28 179–208 Price and Yield Calculations 32 209–224 U S Government Securities 36 225–238 Money Market Instruments 37 Chapter 4: Municipal Bonds: Local Government Securities 41 The Problems You’ll Work On 41 What to Watch Out For 42 239–268 GO and Revenue Bonds 43 269–275 The Primary Market 47 276–286 Additional Municipal Bonds 48 287–296 Municipal Notes 49 297–302 Municipal Fund Securities 50 303–313 Taxes on Municipal Bonds 51 314–335 Municipal Bond Rules 52 Chapter 5: Delivering Diversification with Packaged Securities 57 The Problems You’ll Work On 57 What to Watch Out For 58 336–340 Investment Company Rules 59 341–384 Management Investment Companies 59 385–406 Investment Company Options 65 407–431 Annuities 67 432–436 Variable Life Insurance Products 70 Chapter 6: Working with Direct Participation Programs and REITs 73 The Problems You’ll Work On 73 What to Watch Out For 74 437–457 DPPs, General, and Limited Partners 75 458–464 Partnership Paperwork 77 465–470 Passive Gains and Losses 78 471–491 Types of DPPs 79 492–502 REITs 81 Chapter 7: Options: Understanding the Basics of Puts and Calls 83 The Problems You’ll Work On 83 What to Watch Out For 84 503–535 Option Basics 85 536–573 Standard Option Math 88 574–602 Option Paperwork and Rules 93 Chapter 8: Customer Accounts: Doing the Right Thing 97 The Problems You’ll Work On 97 What to Watch Out For 97 603–622 Opening Accounts 98 623–640 Selecting the Appropriate Type of Account 101 641–664 Margin Accounts 103 665–667 Telephone Act of 1991 106 Chapter 9: Securities Analysis: Doing a Little Market Research 107 The Problems You’ll Work On 107 What to Watch Out For 108 668–686 Systematic and Nonsystematic Risk 109 687–709 Fundamental and Technical Analysis 111 710–734 Money Supply and Monetary Policy 114 735–744 Economic Indicators 117 745–752 Cyclical, Defensive, and Growth Investments 118 753–755 Economic Theories 118 Chapter 10: Securities Markets: Taking Orders and Executing Trades 121 The Problems You’ll Work On 121 What to Watch Out For 121 756–763 Primary and Secondary Market 122 764–774 Making the Trade 123 775–781 Broker-Dealer 124 782–810 Executing Customer Orders 125 811–815 Types of Investors 129 Chapter 11: Making Sure the IRS Gets Its Share: Taxes and Retirement Plans 131 The Problems You’ll Work On 131 What to Watch Out For 132 816–822 Tax Categories and Types of Income 133 823–843 Taxes on Investments 133 844–876 Retirement Plans 137 Chapter 12: Rules and Regulations: No Fooling Around 143 The Problems You’ll Work On 143 What to Watch Out For 144 877–892 Securities Regulatory Organizations 145 893–904 FINRA Registration and Reporting Requirements 147 905–957 Trading After the Account Is Open 149 958–993 Additional Rules 156 994–1,001 FDIC and SIPC 161 Part 2: Checking Your Answers 163 Chapter 13: The Answers 165 Chapter 1 Answers 165 Chapter 2 Answers 174 Chapter 3 Answers 187 Chapter 4 Answers 203 Chapter 5 Answers 219 Chapter 6 Answers 234 Chapter 7 Answers 243 Chapter 8 Answers 261 Chapter 9 Answers 272 Chapter 10 Answers 285 Chapter 11 Answers 294 Chapter 12 Answers 302 Index 321