Lecture Notes: Tips, Tricks, and Memory Aids for the SIE Exam

Introduction

• Presenter: Dean Tenney from Las Vegas
• Audience: Test takers preparing for the SIE (Securities Industry Essentials) Exam
• Purpose: Provide test-taking tips, tricks, and memory aids for the SIE exam

Format

• Video covers tips, tricks, and memory aids
• Encouraged to learn the material, but tricks can be a useful supplement

Test Taking Skills

1. Read the Full Question (RTFQ)
   • Avoid answering the question you think is there instead of the one asked
2. Read the Full Answer Set
   • Ensure you review all options before selecting your answer
3. Project the Correct Answer
   • Predict the answer before looking at the options
4. Process of Elimination
   • Eliminate obviously wrong answers to improve odds
5. Reduction to the Ridiculous
   • Consider the implications if an answer were true
6. Principal of Mutual Exclusion
   • Identify answers that cannot coexist
7. Sesame Street Trick
   • "One of these things is not like the other"
8. True/False Next to Each Answer
   • Determine which statements are true or false
9. Too Long to Be Wrong
   • Longer answers are sometimes correct

Memory Aids

Accredited Investor Requirements

• 1, 2, 3 Method
  • $1 million net worth (excluding primary residence)
  • $200,000 in annual income ($300,000 if married)

Market Orders

• Customers Buy High, Sell Low

Brokerage Transactions

• ABC: Agent, Broker, Commission
• Investment Advisor: Advice, Business, Compensation

Discretionary Authority

• Action, Asset, Amount
  • If missing any, discretionary authority is needed

Stock Splits

• More Shares at Lower Price (regular split)
• Less Shares at Higher Price (reverse split)

Government Securities

• Governments Are Goofy
  • Settle T+1, trade in 32nds, actual calendar

Securities Acts

• 33 (Paper), 34 (People and Places)

Primary vs. Secondary Transactions

• Issuer vs. Previous Owner

Rule 144

• One, Four, Four
  • Sell 1% or average of last 4 weeks' trading volume, up to 4 times a year

Options Sequence

• Datto 15: Disclosure, Approval, Trade, Agreement within 15 days

Trade Clearing

• Other People's Money Counts (OPMC)
  • Order, Purchase and Sales, Margin, Cashiering

Dividend Process

• DERP: Declaration, Ex-dividend, Record, Payment

Mutual Fund Requirements

• DIE 90: Dividends + Interest - Expenses, pass through 90%

Bond Market

• Yield to Price Relationship
  • Inverse relationship between interest rates and bond prices

Orders Placement

• SLOBS Over BLISS
  • Sell Limit, Buy Stop (above); Buy Limit, Sell Stop (below)

Options Mnemonics

• Call Up, Put Down
  • Determines intrinsic value and break-even

Conclusion

• Motivational Note: Inch by inch, SIE is a cinch; yard by yard, SIE is hard
• Additional Resources: Practice exams available, including FINRA and Kaplan
• Closing: Encouragement to keep practicing and utilize available resources