SIE PRACTICE 2026 STUDY GUIDE
What is the SEC - Answer A government oversight agency in place to protect (market
participants) investors and make fair and efficient markets
When was the SEC established - Answer 1934
What does the Securities act of 1933 state - Answer Requires full disclosure of important
information to prevent fraud from companies, with enforcement handled by the SEC
What does the Securities act of 1934 state - Answer 1) Regulates securities trading on
secondary markets 2) Requires certain issuers to disclose information 3) File periodic reports to
the SEC if they have over $10 mil in assets or 500+ shareholders
What does the investment advisers act of 1940 state - Answer 1) Limits how investment
advisers can advertise by banning misleading or deceptive ads 2) Defined accredited investors
and qualified clients
What does the investment company act of 1940 state - Answer 1) Requires investment
companies to disclose how they operate, what they invest in, and their financial condition
What are accredited investors - Answer An individual with a net word exceeding $1 million or
a couple both earing $200k and $300k for 2 successive years
What are qualified clients - Answer An individual who meets specific wealth or asset
requirements
Who can be charged performance based fees - Answer accredited investors and qualified
clients
What is SRO - Answer Self Regulatory Organizations
What are some SROS - Answer New York Stock Exchange (NYSE), Chicago Board Options
Exchange (CBOE), FINRA, & Municipal Securities Regulatory Boards (MSRB)
When was the New York Stock Exchange created - Answer 1792
When was the Chicago Board Options Exchange created - Answer 1973
What is the SEC - Answer A government oversight agency in place to protect (market
participants) investors and make fair and efficient markets
When was the SEC established - Answer 1934
What does the Securities act of 1933 state - Answer Requires full disclosure of important
information to prevent fraud from companies, with enforcement handled by the SEC
What does the Securities act of 1934 state - Answer 1) Regulates securities trading on
secondary markets 2) Requires certain issuers to disclose information 3) File periodic reports to
the SEC if they have over $10 mil in assets or 500+ shareholders
What does the investment advisers act of 1940 state - Answer 1) Limits how investment
advisers can advertise by banning misleading or deceptive ads 2) Defined accredited investors
and qualified clients
What does the investment company act of 1940 state - Answer 1) Requires investment
companies to disclose how they operate, what they invest in, and their financial condition
What are accredited investors - Answer An individual with a net word exceeding $1 million or
a couple both earing $200k and $300k for 2 successive years
What are qualified clients - Answer An individual who meets specific wealth or asset
requirements
Who can be charged performance based fees - Answer accredited investors and qualified
clients
What is SRO - Answer Self Regulatory Organizations
What are some SROS - Answer New York Stock Exchange (NYSE), Chicago Board Options
Exchange (CBOE), FINRA, & Municipal Securities Regulatory Boards (MSRB)
When was the New York Stock Exchange created - Answer 1792
When was the Chicago Board Options Exchange created - Answer 1973
