SIE Exam (Securities Industry Essentials)
– Kaplan Review Notes, FINRA 2026–2027
– Complete exam study guide
Introduction:
This document contains comprehensive Kaplan-based review
notes for the SIE (Securities Industry Essentials) Exam,
covering key topics such as market structure, securities
offerings, regulatory bodies, order types, settlement, and
investment risks. The material is organized in a clear question-
and-answer format, making it ideal for exam preparation and
efficient revision. It aligns closely with FINRA SIE exam
objectives and functions as a consolidated study guide for
first-time test takers and repeat candidates.
Exam Questions and Answers:
1. mini-max underwriting---Correct Answer---sets a
minimum amount the issuer needs to raise to move forward
with the underwriting, as well as a maximum amount of
securities the issuer is willing to sell
,2. firm commitment underwriting---Correct Answer---the
underwriters buy shares from the issuer, resell the securities
to the public at a higher price - the public ottering price (POP)
- and earn this price ditterential
3. syndicates---Correct Answer---a type of joint venture
where the BDs share both the risk and the profits from the
ottering
4. institutional investors---Correct Answer---entity that
pools money to purchase securities and other benefit plans like
pensions, hedge funds, investment advisors, and mutual funds
5. qualified institutional buyers (QIBS)---Correct Answer---
owns and invests a minimum of $100 million in securities on a
discretionary basis
6. retail investors---Correct Answer---invests their own
assets
7. accredited investors---Correct Answer----insiders of the
security's issuer (oflcers, board members, major stockholders)
-income of at least $200,000 or more the past two years
-net worth of $1,000,000 or more
-natural personals qualified based on certain professional
certifications
-holders in good standing of the series 7, series 65, series 82
licenses
, 8. municipal advisors---Correct Answer---an investment
banker that advise municipalities on the issuing of municipal
debt and other types of municipal securities
9. securities and exchange commission (SEC)---Correct
Answer---the primary federal regulator in the securities
industry
10. registration statement (S-1)---Correct Answer---the first
step in the process of registering a security with the SEC
11. cooling-off period---Correct Answer---lasts for a
minimum of 20 calendar days (resumes where it left ott and
does not begin anew if there is any revision or expansion)
12. tombstone advertisement---Correct Answer---the only
form of advertising that is permitted during the cooling-ott
period
13. tombstone ads may include---Correct Answer----name of
issuer
-type of security
-number of shares to be sold
-POP
-names of the underwriting members
14. shelf offering registration---Correct Answer----an issuer
who is already a publicly traded company can register new
securities without selling any of the shares until later
– Kaplan Review Notes, FINRA 2026–2027
– Complete exam study guide
Introduction:
This document contains comprehensive Kaplan-based review
notes for the SIE (Securities Industry Essentials) Exam,
covering key topics such as market structure, securities
offerings, regulatory bodies, order types, settlement, and
investment risks. The material is organized in a clear question-
and-answer format, making it ideal for exam preparation and
efficient revision. It aligns closely with FINRA SIE exam
objectives and functions as a consolidated study guide for
first-time test takers and repeat candidates.
Exam Questions and Answers:
1. mini-max underwriting---Correct Answer---sets a
minimum amount the issuer needs to raise to move forward
with the underwriting, as well as a maximum amount of
securities the issuer is willing to sell
,2. firm commitment underwriting---Correct Answer---the
underwriters buy shares from the issuer, resell the securities
to the public at a higher price - the public ottering price (POP)
- and earn this price ditterential
3. syndicates---Correct Answer---a type of joint venture
where the BDs share both the risk and the profits from the
ottering
4. institutional investors---Correct Answer---entity that
pools money to purchase securities and other benefit plans like
pensions, hedge funds, investment advisors, and mutual funds
5. qualified institutional buyers (QIBS)---Correct Answer---
owns and invests a minimum of $100 million in securities on a
discretionary basis
6. retail investors---Correct Answer---invests their own
assets
7. accredited investors---Correct Answer----insiders of the
security's issuer (oflcers, board members, major stockholders)
-income of at least $200,000 or more the past two years
-net worth of $1,000,000 or more
-natural personals qualified based on certain professional
certifications
-holders in good standing of the series 7, series 65, series 82
licenses
, 8. municipal advisors---Correct Answer---an investment
banker that advise municipalities on the issuing of municipal
debt and other types of municipal securities
9. securities and exchange commission (SEC)---Correct
Answer---the primary federal regulator in the securities
industry
10. registration statement (S-1)---Correct Answer---the first
step in the process of registering a security with the SEC
11. cooling-off period---Correct Answer---lasts for a
minimum of 20 calendar days (resumes where it left ott and
does not begin anew if there is any revision or expansion)
12. tombstone advertisement---Correct Answer---the only
form of advertising that is permitted during the cooling-ott
period
13. tombstone ads may include---Correct Answer----name of
issuer
-type of security
-number of shares to be sold
-POP
-names of the underwriting members
14. shelf offering registration---Correct Answer----an issuer
who is already a publicly traded company can register new
securities without selling any of the shares until later
