SIE

The Securities Industry Essentials (SIE) exam is FINRA's introductory-level qualification exam. It assesses a candidate's knowledge of basic securities industry information: types of products and their risks, the structure of the securities industry and its regulatory agencies, and regulated and prohibited practices. It does not qualify you to sell securities by itself. Registration requires passing the SIE and a representative-level exam while associated with a FINRA member firm.

Exam Pattern

The exam contains 80 multiple-choice questions, each with four answer choices. Seventy-five questions are scored. The other 5 are unscored pretest items that FINRA is evaluating for future use; they are randomly distributed through the exam and look exactly like scored items, so treat every question as if it counts. You have 1 hour and 45 minutes, about 1 minute 19 seconds per question, and there is no penalty for guessing.

What the Exam Covers

FINRA's content outline divides the exam into four sections. Section 2, Understanding Products and Their Risks, carries the most weight, and Sections 2 and 3 together account for three of every four scored questions.

1·KnowledgeofCapitalMarkets 2·ProductsandTheirRisks 3 · Trading , Accounts , and Prohibited Activities 4·RegulatoryFramework	16% · 12 questions 44% · 33 questions 31% · 23 questions 9% · 7 questions
Section	Topics
1 KnowledgeofCapitalMarkets .	Regulatory entities , agencies , and market participants · Market structure · Economic
	factors·Offerings
2 UnderstandingProductsandTheir .	Products (equity , debt , options , packaged products , DPPs) · Investment risks
Risks
3 UnderstandingTrading Customer . ,	Trading , settlement , and corporate actions · Customer accounts and compliance
Accounts andProhibitedActivities ,	considerations·Prohibitedactivities
4 OverviewoftheRegulatoryFramework .	SROregulatoryrequirementsforassociatedpersons·Employeeconductandreportable
	events

Scoring and Results

Results are reported on a scale, and a score of 70 is required to pass. Only the 75 scored items count toward your result. Candidates receive their result at the end of the session, and a passing result is valid for four years: within that time you must pass a representative-level exam and register with a member firm, or take the SIE again.

Exam at a Glance

ExamAspect	Details
Administeredby	FinancialIndustryRegulatoryAuthority(FINRA)
Delivery	Computer-based at a Prometric test center or online with remote proctoring ,
Questions	80 multiple-choice questions with four answer choices each: 75 scored and 5 unscored pretest items
Time	1hourand45minutes
Passingscore	70
Examfee	$100
Eligibility	Opentoindividuals18orolder;nofirmsponsorshipisrequired
Resultvalidity	Fouryearsfromthedatepassed
Retakes	A 30 -day wait after a first or second failed attempt and a 180 -day wait after three failed attempts
	within24months;FINRAhasamendeditsrulestoshortenthesewaitsto15and60daysoncethe
	changeisimplemented

Who Takes the SIE, and What Comes Next

Because no sponsorship is required, the SIE is taken by college students, career changers, and new hires at broker- dealers alike. Passing it shows employers that you already understand the fundamentals of the industry. After passing, you move on to a representative-level exam that matches your role, taken with firm sponsorship.

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No sponsor needed; valid 4

Member firm files Form U4

Series 6, 7, 22, 57, 79, 82, 86/87,

Plus any state law exam required

years

or 99

The Series 7 (General Securities Representative) is the broadest representative registration, and the Series 6 covers mutual funds, variable contracts, and 529 plans. The state law exams (Series 63, 65, and 66), administered by FINRA on behalf of NASAA, do not require the SIE. Supervisory roles require a principal exam, such as the Series 24, after the representative-level qualification.