Other

Securities Industry Essentials Exam LICENSE EXAM MANUAL 3RD EDITION

1 purchase

Course
FINANCE 5

Institution
FINANCE 5

SIE Securities Industry Essentials Exam LICENSE EXAM MANUAL 3RD EDITION Contents SIE Exam and Industry Introduction 1 What Is the SIE? 1 How the Exam Is Structured 1 How to Make an Exam Appointment 2 On the Day of You...

[Show more]

Preview 4 out of 484 pages

View example

Uploaded on March 23, 2023
Number of pages 484
Written in 2022/2023
Type Other
Person Unknown

knopman marks method
what is the sie
securities industry essentials exam license exam manual 3rd edition
how to make an exam appointment
sie exam and industry introduction

docguru

Member since 4 year 274 documents sold

$16.49

Add to cart

Add to wishlist

100% satisfaction guarantee
Immediately available after payment
Both online and in PDF
No strings attached

SIE
Securities Industry
Essentials Exam
LICENSE EXAM MANUAL
3RD EDITION

,This material is protected under US copyright law. Each book is intended for only
one end user. Any attempt to distribute or resell this material is strictly prohibited.

Copyright © 2018, 2019, 2020 by Financial Training Services, Inc. All rights reserved

Printed in the United States of America

Designed and composed at Hobblebush Design, Concord, NH
(www.hobblebush.com)

Editorial services provided by Pure Text (www.pure-text.net)

Published by:
Financial Training Services, Inc., New York, NY

Edited by:
Ian Franklin
Howard Kaplan
Marcia Larson
Brian Marks
David Meshkov

, Contents
SIE Exam and Industry Introduction .......................................................... 1
What Is the SIE?........................................................................................................................ 1
How the Exam Is Structured ............................................................................................... 1
How to Make an Exam Appointment ............................................................................... 2
On the Day of Your Exam ...................................................................................................... 3
Knopman Marks Method ...................................................................................................... 4
Financial Industry Introduction ........................................................................................ 5
Regulatory Entities and Agencies .............................................................................................6
Market Participants ........................................................................................................................7

Section 1: Understanding Products and Their Risks ........... 11
1. Equity Securities ......................................................................................... 13
1.1 Common Stock ................................................................................................................ 14
1.1.1 Ownership Rights of Common Stock .......................................................................... 15
1.2 Classifying Common Stock ......................................................................................... 20
1.2.1 Classification by Investment Profile ........................................................................... 20
1.2.2 Penny Stocks ......................................................................................................................... 21
1.3 Risks of Owning Common Stock .............................................................................. 22
1.3.1 Systematic Risk.................................................................................................................... 22
1.3.2 Non-Systematic Risk ......................................................................................................... 22
1.4 Depositary Receipts ...................................................................................................... 23
1.4.1 American Depositary Receipts (ADRs) ..................................................................... 23
1.5 Preferred Stock ............................................................................................................... 26
1.5.1 Features of Preferred Stock ........................................................................................... 26
1.5.2 Types of Preferred Stock ................................................................................................. 27
1.5.3 Preferred Stock Versus Common Stock .................................................................... 28
1.6 Negotiability of Equity Securities............................................................................ 29
1.6.1 Registrar and Transfer Agent ........................................................................................ 29
1.6.2 Stock Endorsements.......................................................................................................... 30

Contents 1.7 Dividend Procedures ................................................................................................... 30
iii

, 1.7.1 Cash Settlement................................................................................................................... 31
1.7.2 Ex-Dividend Date and Price ........................................................................................... 32
1.7.3 Forms of Dividend Payment .......................................................................................... 33
1.7.4 Stock Splits and Dividends ............................................................................................. 33
1.8 Short Sales........................................................................................................................ 35

2. Debt Securities ....................................................................................... 43
2.1 General Characteristics of Bonds............................................................................. 44
2.1.1 Forms of Ownership .......................................................................................................... 44
2.1.2 Par Value ................................................................................................................................ 45
2.1.3 Bond Quotation ................................................................................................................... 45
2.1.4 Coupon .................................................................................................................................... 46
2.1.5 Zero-Coupon Bonds ........................................................................................................... 47
2.1.6 Bond Pricing ......................................................................................................................... 48
2.1.7 Basis Points ........................................................................................................................... 49
2.1.8 Maturity .................................................................................................................................. 49
2.1.9 Call Feature ........................................................................................................................... 50
2.2 Bond Yields ....................................................................................................................... 54
2.2.1 Nominal Yield ....................................................................................................................... 54
2.2.2 Current Yield ........................................................................................................................ 54
2.2.3 Yield to Maturity ................................................................................................................. 55
2.2.4 Yield to Call............................................................................................................................ 55
2.2.5 Yield Relationships ............................................................................................................ 56
2.3 Bond Risks ........................................................................................................................ 57
2.3.1 Interest Rate Risk ............................................................................................................... 57
2.3.2 Call Risk .................................................................................................................................. 58
2.3.3 Reinvestment Rate Risk ................................................................................................... 58
2.3.4 Inflationary Risk ................................................................................................................. 58
2.3.5 Credit Risk ............................................................................................................................. 59
2.4 Accrued Interest ............................................................................................................. 60
2.5 Accretion and Amortization ...................................................................................... 63

3. Types of Bonds .......................................................................... 71
3.1 Corporate Bonds ............................................................................................................ 72
3.1.1 Trust Indenture Act of 1939 .......................................................................................... 72
3.1.2 Secured and Unsecured Corporate Bonds ............................................................... 72
3.1.3 Convertible Bonds .............................................................................................................. 73
3.1.4 Eurodollar Bonds................................................................................................................ 75
3.1.5 Secondary Market Trading ............................................................................................. 75
3.2 US Government Securities .......................................................................................... 75
3.2.1 Marketable US Government Securities ..................................................................... 76
3.2.2 Quoting Treasury Notes and Bonds............................................................................ 79
3.2.3 Quoting Treasury Bills ..................................................................................................... 79

iv

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller docguru. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $16.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67479 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling

Other

Securities Industry Essentials Exam LICENSE EXAM MANUAL 3RD EDITION

Document information

Subjects

Written for

Seller

Reviews received

Content preview