SIE Exam Review Notes

Purpose of the Video

• High-level review for SIE Exam
• Intended for last-minute revision (day before or two days before the exam)
• Not a replacement for reading the book

Exam Strategy

• Approach the exam with confidence
• Understand it's okay to not know every answer
• Eat well, stay hydrated, avoid too much caffeine before the test
• Only use mark for review for truly uncertain questions

Regulators Overview

• SEC (Securities and Exchange Commission):
  • U.S federal government
  • Regulates securities, can pursue criminal/civil charges
  • Requires registration for public securities sales (Act of 1933)
• FINRA (Financial Industry Regulatory Authority):
  • Self-regulatory organization
  • Regulates broker-dealers and agents

Securities Registration

• Act of 1933: Public registration of securities
• Act of 1934: Regulates secondary markets, creates SEC
• Exemptions to Registration:
  • Rule 147: Intrastate offerings
  • Reg D: Private placements
  • Reg A: Small issuers

Types of Securities

• Common Stock: Ownership, voting rights, dividends, risks include market and business risk
• Preferred Stock: Fixed dividend, less risky than common stock, types include cumulative, participating, convertible
• Bonds: Debt securities, secured/unsecured, riskier for issuers but safer for investors

Bond Details

• Types: Corporate, municipal (GO & Revenue), U.S. Treasury
• Risks: Interest rate, call, reinvestment, inflation, default
• Credit Ratings: Moody's and S&P, investment grade vs. speculative

Investment Companies

• Mutual Funds: Open-end, actively managed, priced once a day
• Closed-End Funds: Trades on exchange, fixed number of shares
• ETFs: Trades like stocks, passively managed

Retirement Accounts

• Variable Annuities: Non-qualified, post-tax contributions, tax-deferred growth
• IRAs: Traditional (pre-tax), Roth (post-tax, tax-free withdrawals)
• 401(k) & Other Plans: Company-sponsored, pre-tax contributions

Compliance and Regulations

• AML (Anti-Money Laundering): Red flags, CTRs, SARs
• Registered Rep Rules: No participating in IPOs, outside accounts require employer permission
• Continuing Education: Annual requirements for license holders

Economics and Monetary Policy

• Business Cycles: Expansion, Peak, Contraction, Trough
• Monetary Policy Tools: Discount rate, open market operations
• Fiscal Policy: Taxing and spending to manage economy

These notes summarize the key points from the SIE Exam review video, focusing on exam strategy, understanding regulators, various types of securities and their risks, compliance requirements, and an overview of economic and monetary policy.