1 for specific request mail
Securities Industry Essentials® (SIE®) Exam
Questions and Correct Answers | Latest Update
Issuer
Ans: An organization that distributes and sells securities to investors
Example: Coca-Cola is the issuer of Coca-Cola stock.
Long
Ans: Finance jargon for owning a security
Assignment Expert
Example: the investor is long (owns) 100 shares of GE stock.
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Going long
Ans: Finance jargon for purchasing ownership in a security
Example: the investor goes long (buys) 100 shares of GE stock.
2026
Outstanding shares
©
Ans: The number of shares held by the company's shareholders
Equity
Ans: Formal term for ownership
Security
Ans: Legal term for a specific type of investment
Examples: common stocks, bonds, mutual funds, ETFs, options
Statutory
Ans: A statutory voting structure allows stockholders to apply only the
amount of votes they have to each BOD position. This type of voting
structure is more beneficial for larger stockholders.
, 2 for specific request mail
The investor can only apply up to X# votes per open position
Cumulative
Ans: A cumulative voting structure allows stockholders to apply the
total number of votes they have to any BOD position. This type of voting
structure is more beneficial for small stockholders.
The investor can apply up to X# votes in any manner
Board of Directors (BOD)
Ans: * Responsible for the general direction and success of a company
Assignment Expert
* Stockholders control who serves
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Proxies
Ans: Voting materials used by investors unable to attend the annual
meeting
2026
Statutory voting structure
©
Ans: * Applies votes on a per position basis
* More beneficial for large stockholders
Cumulative voting structure
Ans: * Can apply all votes to one position
* More beneficial for small stockholders
Issued Shares
Ans: Shares sold to investors. Once shares are issued, they trade in the
secondary market among investors.
Types of shares
Ans: Shares of stock are categorized into one of four buckets:
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* Authorized
* Issued
* Outstanding
* Treasury
Warrants
Ans: Warrants are similar to rights as they provide the right to purchase
shares from a publicly traded company at a fixed price.
Assignment Expert
Warrants maintain a fixed exercise price, but at a premium to the market
price. Warrants have time value, meaning the length of time they exist
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gives them value.
* Right to purchase new shares at a fixed price
* No intrinsic value at issuance
2026
* Time value exists
©
* Long-term (typically 5 years or longer)
* Possible outcomes for warrants:
* Exercise
* Trade
* Expire
Rights
Ans: * Right to purchase new shares at a fixed price
* Intrinsic value at issuance
* Little time value
Securities Industry Essentials® (SIE®) Exam
Questions and Correct Answers | Latest Update
Issuer
Ans: An organization that distributes and sells securities to investors
Example: Coca-Cola is the issuer of Coca-Cola stock.
Long
Ans: Finance jargon for owning a security
Assignment Expert
Example: the investor is long (owns) 100 shares of GE stock.
Guru01 - Stuvia
Going long
Ans: Finance jargon for purchasing ownership in a security
Example: the investor goes long (buys) 100 shares of GE stock.
2026
Outstanding shares
©
Ans: The number of shares held by the company's shareholders
Equity
Ans: Formal term for ownership
Security
Ans: Legal term for a specific type of investment
Examples: common stocks, bonds, mutual funds, ETFs, options
Statutory
Ans: A statutory voting structure allows stockholders to apply only the
amount of votes they have to each BOD position. This type of voting
structure is more beneficial for larger stockholders.
, 2 for specific request mail
The investor can only apply up to X# votes per open position
Cumulative
Ans: A cumulative voting structure allows stockholders to apply the
total number of votes they have to any BOD position. This type of voting
structure is more beneficial for small stockholders.
The investor can apply up to X# votes in any manner
Board of Directors (BOD)
Ans: * Responsible for the general direction and success of a company
Assignment Expert
* Stockholders control who serves
Guru01 - Stuvia
Proxies
Ans: Voting materials used by investors unable to attend the annual
meeting
2026
Statutory voting structure
©
Ans: * Applies votes on a per position basis
* More beneficial for large stockholders
Cumulative voting structure
Ans: * Can apply all votes to one position
* More beneficial for small stockholders
Issued Shares
Ans: Shares sold to investors. Once shares are issued, they trade in the
secondary market among investors.
Types of shares
Ans: Shares of stock are categorized into one of four buckets:
, 3 for specific request mail
* Authorized
* Issued
* Outstanding
* Treasury
Warrants
Ans: Warrants are similar to rights as they provide the right to purchase
shares from a publicly traded company at a fixed price.
Assignment Expert
Warrants maintain a fixed exercise price, but at a premium to the market
price. Warrants have time value, meaning the length of time they exist
Guru01 - Stuvia
gives them value.
* Right to purchase new shares at a fixed price
* No intrinsic value at issuance
2026
* Time value exists
©
* Long-term (typically 5 years or longer)
* Possible outcomes for warrants:
* Exercise
* Trade
* Expire
Rights
Ans: * Right to purchase new shares at a fixed price
* Intrinsic value at issuance
* Little time value
