Securities Industry Essentials (SIE)
Exam Questions and Correct
Detailed Answers Latest Update
This Year
SEC - correct answer=✔✔Federal
agency that regulates securities
markets and enforces securities laws
FINRA - correct
answer=✔✔Self-regulatory organization
overseeing broker-dealers and
registered representatives
1
,MSRB - correct answer=✔✔SRO
regulating municipal securities firms
and advisors
CBOE - correct answer=✔✔Options
exchange and SRO for options
markets
Federal Reserve - correct
answer=✔✔Controls monetary policy,
interest rates, and money supply
Treasury/IRS - correct
answer=✔✔Handles taxation and issues
Treasury securities
2
,NASAA - correct answer=✔✔State
securities regulators enforcing
blue-sky laws
SIPC - correct answer=✔✔Protects
customer assets if a broker-dealer
fails (not market losses)
FDIC - correct answer=✔✔Insures bank
deposits, not securities
DTCC - correct answer=✔✔Provides
clearing and settlement for securities
transactions
OCC - correct answer=✔✔Clears and
guarantees listed options trades
3
, Retail investor - correct
answer=✔✔Individual investor trading
for personal account
Institutional investor - correct
answer=✔✔Large organizations
investing professionally
Accredited investor - correct
answer=✔✔High-income or
high-net-worth investor eligible for
private placements
Broker-dealer - correct answer=✔✔Firm
executing trades as agent or principal
4
Exam Questions and Correct
Detailed Answers Latest Update
This Year
SEC - correct answer=✔✔Federal
agency that regulates securities
markets and enforces securities laws
FINRA - correct
answer=✔✔Self-regulatory organization
overseeing broker-dealers and
registered representatives
1
,MSRB - correct answer=✔✔SRO
regulating municipal securities firms
and advisors
CBOE - correct answer=✔✔Options
exchange and SRO for options
markets
Federal Reserve - correct
answer=✔✔Controls monetary policy,
interest rates, and money supply
Treasury/IRS - correct
answer=✔✔Handles taxation and issues
Treasury securities
2
,NASAA - correct answer=✔✔State
securities regulators enforcing
blue-sky laws
SIPC - correct answer=✔✔Protects
customer assets if a broker-dealer
fails (not market losses)
FDIC - correct answer=✔✔Insures bank
deposits, not securities
DTCC - correct answer=✔✔Provides
clearing and settlement for securities
transactions
OCC - correct answer=✔✔Clears and
guarantees listed options trades
3
, Retail investor - correct
answer=✔✔Individual investor trading
for personal account
Institutional investor - correct
answer=✔✔Large organizations
investing professionally
Accredited investor - correct
answer=✔✔High-income or
high-net-worth investor eligible for
private placements
Broker-dealer - correct answer=✔✔Firm
executing trades as agent or principal
4