Free SIE Exam Flashcards
Memorize 50 essential terms and definitions for the Securities Industry Essentials (SIE) Exam. See the term, recall the definition, then flip to check yourself.
SEC (Securities and Exchange Commission)
The primary federal regulator of the securities industry. Enforces securities laws, reviews registration statements, oversees market participants, and protects investors through disclosure requirements.
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About These SIE Flashcards
These 50 flashcards are designed to help you memorize key terms and definitions for the Securities Industry Essentials (SIE) Exam. Each card shows a term on the front and its definition on the back—the classic flashcard format for vocabulary memorization. Use these alongside our practice questions to build both recall and comprehension.
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Frequently Asked Questions
What is the SIE exam pass rate?
The SIE exam has an estimated pass rate of 74% for first-time candidates and 82% overall (including retakes), based on FINRA's last published statistics from August 2019. FINRA stopped publishing pass rates in 2020. To pass, you must correctly answer 53 of 75 scored questions (70%). The exam costs $80 and does not require firm sponsorship.
What are the hardest topics on the SIE exam?
The most challenging SIE topics are: (1) Options - the #1 topic candidates request tutoring for due to derivative complexity, (2) Stop-limit orders - combining buy/sell order types confuses many test-takers, (3) Bond yields - understanding nominal yield, current yield, yield to maturity, and yield to call in discount vs premium scenarios, and (4) Annuities - particularly variable vs fixed annuity features. These topics appear heavily in the 'Products and Their Risks' section, which comprises 44% of the exam.
Can I take the SIE exam without a job or sponsorship?
Yes, the SIE exam is unique among FINRA exams - anyone 18 or older can take it without firm sponsorship. You can register directly through FINRA's Test Enrollment Services System (TESS). SIE results remain valid for 4 years, allowing you to demonstrate industry knowledge to prospective employers before being hired. However, to become fully registered, you must later pass a representative-level exam (like Series 7 or 6) through a sponsoring firm.
How long does SIE exam validity last?
SIE exam results are valid for 4 years from your passing date. If you don't associate with a FINRA member firm and pass a top-off exam (Series 6, 7, etc.) within 4 years, you'll need to retake the SIE. Once you become registered with a firm, your SIE qualification remains active as long as you maintain continuous registration or are within a registration gap period.
What happens if I fail the SIE exam?
If you fail the SIE, you must wait 30 days before retaking it. After a second failure, another 30-day wait applies. After a third failure, the waiting period extends to 180 days. There's no limit on total attempts, and each retake costs $80. The 180-day wait resets to the 30/30/180 cycle if 2 years pass since your last attempt (FINRA's 2023 policy update).
How many questions are on the SIE exam in 2025?
The SIE exam has 85 total questions: 75 scored and 10 unscored (pretest) questions. Starting October 27, 2025, FINRA will reduce unscored questions to 5, making the total 80 questions. You have 1 hour 45 minutes to complete the exam. Questions cover: Capital Markets (16%), Products & Risks (44%), Trading & Accounts (31%), and Regulatory Framework (9%).