TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
SIE EXAM 2024 STUDY GUIDE WITH
VERIFIED SOLUTIONS
Federal Reserve Board - Answer✔️✔️-Founded on December 23rd 1913, to oversee
financial panics. Independent of direct political influence. Federal Reserve Act was
passed to stabilize prices, maximize employment, moderate long term interest.
FINRA vs MSRB - Answer✔️✔️-FINRA oversees brokerage firms and their associated
persons.
MSRB- regulates the municipal securities market including dealers, municipal advisers,
and issuers.
Municipal Securities Rulemaking Board
Structure of the Fed - Answer✔️✔️-The Board of Governors/The Federal Open Market
Commitee/ Twelve Regional Federal Reserve Banks/Member banks throughout the
United States. Made up of the Federal Reserve Board FRB which is appointed by the
US president and 12 regional Federal Reserve Banks which supervise private
commercial banks.
FOMC (Federal Open Market Committee) - Answer✔️✔️-a body that consists of the
seven members of the board of governors and the twelve presidents of the regional
Federal Reserve Banks. Not all of the twelve presidents have a vote at any given time.
1/37
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
Department of the Treasury - Answer✔️✔️-Collects, borrows, spends, and prints money
Roles and Responsibilities of the FED - Answer✔️✔️-Strengthening the US standing in
the World Economy/ Maintaining a balance between the private interests of banks and
the centralized responsibilities of the government, including supervising and protecting
the credit rights of consumers/ ensuring the financial system's stability and mitigating
systemic risk within the financial markets.
Federal Deposit Insurance Corporation (FDIC) - Answer✔️✔️-an agency created in 1933
to insure individuals' bank accounts, protecting people against losses due to bank
failures. Extends to checking and saving accounts, money market accounts, Certificates
of Deposit, and IRAs but not annuities, mutual funds, life insurance policies, bonds or
stocks. Covers up to 250,000 dollars per individual.
State (Blue-Sky) Regulation - Answer✔️✔️-Established under the Uniform Securities Act
(USA) - Each state has the authority to impose additional requirements for both issuers
and financial intermediaries. Requires that private investment funds register in their
home state and every state where they conduct business.
North American Securities Administrators Association (NASAA) - Answer✔️✔️-
Established in 1919 in Kansas, 67 securities administrators from all over North America
are responsible for licensing securities firms, investment professionals, and other tasks.
Protects clients who seek investment advice or deal with securities such as a small
business who wants to review financial offerings .
2/37
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
Securities Act of 1933 - Answer✔️✔️-The first major law regarding the sale of securities.
It required that companies register their securities sold to the public with the SEC and
that investment bankers must provide full and accurate information related to new
securities issues to potential investors. Stipulates that companies must provide a
description of the security being offered, description of the company's business and
properties, and Financial statements that have been certified by independent
accountants.
Securities Exchange Act of 1934 - Answer✔️✔️-An act that regulates the trading of
securities such as stocks and bonds in the secondary market. Purpose was to promote
financial transparency and accuracy while reducing the incidence of fraud and market
manipulation. Established the SEC led by five commissioners appointed by the
president. These five are split into divisions including division of trading and markets,
investment management, corporation finance, enforcement, economic and risk analysis.
Investment Advisers Act of 1940 - Answer✔️✔️-Legislation governing who must register
with the SEC as an investment adviser. Prohibits advisers from engaging in front-
running and churning practices. Entities that are excluded are Banks and bank holding
companies, Lawyers, accountants, engineers, and teachers, Brokers and dealers,
Publishers, Government securities advisers, credit rating agencies, family offices.
Securities Investors Protection Act (SIPA) - Answer✔️✔️-Non-profit organization
established by Congress to safeguard the customers of brokerage firms that become
3/37
, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
insolvent by utilizing multiple bodies including the SEC, self-regulating organizations,
and the securities investor protection corporation (SIPC).
SIPC Coverage - Answer✔️✔️-$500,000 per customer of which no more than $250,000
in cash per account. (only the equity in margin accounts, not the full market value).
Some examples include Joint Accounts, Corporate accounts, Individual accounts, Trust
Accounts, Roth IRAs and Traditional IRAs, Accounts held by a legal guardian or estate
executor.
Penny Stock Reform Act of 1990 - Answer✔️✔️-regulates the solicited sales of certain
low-priced securities to potential new customers. A penny stock is a stock that trades
below 5$ a share or stocks that don't meet the NYSE official listing standards.
Insider Trading and Securities Fraud Enforcement Act of 1988 (ITSFEA) - Answer✔️✔️-
The act aims to increase the liability penalties to all involved parties for insider trading.
The Investment Company Act of 1940 - Answer✔️✔️-Its chief aim is to safeguard
investors by making them aware of the risks of purchasing and holding securities.
Telephone Consumer Protection Act of 1991 - Answer✔️✔️-A federal law that places
restrictions on telephone solicitation of business.
Financial Industry Regulatory Authority (FINRA) - Answer✔️✔️-a self-regulatory
organization and the largest non-governmental regulator of securities firms in the US;
registers and provides qualification exams to industry professionals, writes rules for
trading, educates the investing public, provides trade reporting, resolves disputes
between customers and firms
4/37
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
SIE EXAM 2024 STUDY GUIDE WITH
VERIFIED SOLUTIONS
Federal Reserve Board - Answer✔️✔️-Founded on December 23rd 1913, to oversee
financial panics. Independent of direct political influence. Federal Reserve Act was
passed to stabilize prices, maximize employment, moderate long term interest.
FINRA vs MSRB - Answer✔️✔️-FINRA oversees brokerage firms and their associated
persons.
MSRB- regulates the municipal securities market including dealers, municipal advisers,
and issuers.
Municipal Securities Rulemaking Board
Structure of the Fed - Answer✔️✔️-The Board of Governors/The Federal Open Market
Commitee/ Twelve Regional Federal Reserve Banks/Member banks throughout the
United States. Made up of the Federal Reserve Board FRB which is appointed by the
US president and 12 regional Federal Reserve Banks which supervise private
commercial banks.
FOMC (Federal Open Market Committee) - Answer✔️✔️-a body that consists of the
seven members of the board of governors and the twelve presidents of the regional
Federal Reserve Banks. Not all of the twelve presidents have a vote at any given time.
1/37
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
Department of the Treasury - Answer✔️✔️-Collects, borrows, spends, and prints money
Roles and Responsibilities of the FED - Answer✔️✔️-Strengthening the US standing in
the World Economy/ Maintaining a balance between the private interests of banks and
the centralized responsibilities of the government, including supervising and protecting
the credit rights of consumers/ ensuring the financial system's stability and mitigating
systemic risk within the financial markets.
Federal Deposit Insurance Corporation (FDIC) - Answer✔️✔️-an agency created in 1933
to insure individuals' bank accounts, protecting people against losses due to bank
failures. Extends to checking and saving accounts, money market accounts, Certificates
of Deposit, and IRAs but not annuities, mutual funds, life insurance policies, bonds or
stocks. Covers up to 250,000 dollars per individual.
State (Blue-Sky) Regulation - Answer✔️✔️-Established under the Uniform Securities Act
(USA) - Each state has the authority to impose additional requirements for both issuers
and financial intermediaries. Requires that private investment funds register in their
home state and every state where they conduct business.
North American Securities Administrators Association (NASAA) - Answer✔️✔️-
Established in 1919 in Kansas, 67 securities administrators from all over North America
are responsible for licensing securities firms, investment professionals, and other tasks.
Protects clients who seek investment advice or deal with securities such as a small
business who wants to review financial offerings .
2/37
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
Securities Act of 1933 - Answer✔️✔️-The first major law regarding the sale of securities.
It required that companies register their securities sold to the public with the SEC and
that investment bankers must provide full and accurate information related to new
securities issues to potential investors. Stipulates that companies must provide a
description of the security being offered, description of the company's business and
properties, and Financial statements that have been certified by independent
accountants.
Securities Exchange Act of 1934 - Answer✔️✔️-An act that regulates the trading of
securities such as stocks and bonds in the secondary market. Purpose was to promote
financial transparency and accuracy while reducing the incidence of fraud and market
manipulation. Established the SEC led by five commissioners appointed by the
president. These five are split into divisions including division of trading and markets,
investment management, corporation finance, enforcement, economic and risk analysis.
Investment Advisers Act of 1940 - Answer✔️✔️-Legislation governing who must register
with the SEC as an investment adviser. Prohibits advisers from engaging in front-
running and churning practices. Entities that are excluded are Banks and bank holding
companies, Lawyers, accountants, engineers, and teachers, Brokers and dealers,
Publishers, Government securities advisers, credit rating agencies, family offices.
Securities Investors Protection Act (SIPA) - Answer✔️✔️-Non-profit organization
established by Congress to safeguard the customers of brokerage firms that become
3/37
, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
insolvent by utilizing multiple bodies including the SEC, self-regulating organizations,
and the securities investor protection corporation (SIPC).
SIPC Coverage - Answer✔️✔️-$500,000 per customer of which no more than $250,000
in cash per account. (only the equity in margin accounts, not the full market value).
Some examples include Joint Accounts, Corporate accounts, Individual accounts, Trust
Accounts, Roth IRAs and Traditional IRAs, Accounts held by a legal guardian or estate
executor.
Penny Stock Reform Act of 1990 - Answer✔️✔️-regulates the solicited sales of certain
low-priced securities to potential new customers. A penny stock is a stock that trades
below 5$ a share or stocks that don't meet the NYSE official listing standards.
Insider Trading and Securities Fraud Enforcement Act of 1988 (ITSFEA) - Answer✔️✔️-
The act aims to increase the liability penalties to all involved parties for insider trading.
The Investment Company Act of 1940 - Answer✔️✔️-Its chief aim is to safeguard
investors by making them aware of the risks of purchasing and holding securities.
Telephone Consumer Protection Act of 1991 - Answer✔️✔️-A federal law that places
restrictions on telephone solicitation of business.
Financial Industry Regulatory Authority (FINRA) - Answer✔️✔️-a self-regulatory
organization and the largest non-governmental regulator of securities firms in the US;
registers and provides qualification exams to industry professionals, writes rules for
trading, educates the investing public, provides trade reporting, resolves disputes
between customers and firms
4/37
