SIE EXAM Q&A
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 FINRA - ANSWER -A non profit org supervised by the SEC charged with
overseeing broker-dealer in the USA
What is FINRAS responsibility - ANSWER -Meant to protect the investing public by
writing and enforcing rules to broker-dealers for market transparency
What is the MSRB duties - ANSWER -Write and enforce rules for investment firms and
banks who sell municipal bonds, notes, other municipal securities
Who and What are municipal securities issued for - ANSWER -By states or local
governments to fund public projects which are often tax-free
When and Why was the United States Treasury established - ANSWER -1789 and to
manage government revenue
When was the Financial Crimes Enforcement Network (FinCEN) established -
ANSWER -2014
Why was FinCEN established - ANSWER -To detect and prevent national and
international money laundering attempts
What does FinCEN require from banks and other financial institutions - ANSWER -
Submit a CTR (Currency Transaction Report) for any transaction involving $10,000 or
more
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 FINRA - ANSWER -A non profit org supervised by the SEC charged with
overseeing broker-dealer in the USA
What is FINRAS responsibility - ANSWER -Meant to protect the investing public by
writing and enforcing rules to broker-dealers for market transparency
What is the MSRB duties - ANSWER -Write and enforce rules for investment firms and
banks who sell municipal bonds, notes, other municipal securities
Who and What are municipal securities issued for - ANSWER -By states or local
governments to fund public projects which are often tax-free
When and Why was the United States Treasury established - ANSWER -1789 and to
manage government revenue
When was the Financial Crimes Enforcement Network (FinCEN) established -
ANSWER -2014
Why was FinCEN established - ANSWER -To detect and prevent national and
international money laundering attempts
What does FinCEN require from banks and other financial institutions - ANSWER -
Submit a CTR (Currency Transaction Report) for any transaction involving $10,000 or
more
