SIE Exam Questions & Answers 2023/2024
SIE Purpose and Mission - ANSWER-A U.S. government oversight agency responsible for regulating the securities markets and protecting investors.
The mission of the SEC is to protect investors; maintain fair, orderly, and efficient markets; and facilitate ...
SIE Exam Questions & Answers
2023/2024
SIE Purpose and Mission - ANSWER-A U.S. government oversight agency responsible for regulating the
securities markets and protecting investors.
The mission of the SEC is to protect investors; maintain fair, orderly, and efficient markets; and facilitate
capital formation.
Definition of SEC - ANSWER-The U.S. Securities and Exchange Commission (SEC) is an independent
federal government regulatory agency responsible for protecting investors, maintaining fair and orderly
functioning of the securities markets, and facilitating capital formation.
Jurisdiction of SEC - ANSWER-The SEC holds primary responsibility for enforcing the federal securities
laws, proposing securities rules, and regulating the securities industry, which is the nation's stock and
options exchanges, and other activities and organizations, including the electronic securities markets in
the United States
Purpose of SRO's - ANSWER-A self-regulatory organization is an organization that exercises some degree
of regulatory authority over an industry or profession.
SRO - ANSWER-Self-regulatory Organizations
Function under SEC oversight. Accountable for enforcing federal securities laws and supervising
securities practices within an assigned jurisdiction. Largest 3: FINRA, MSRB, and CBOE
Mission of SRO's - ANSWER-provide information and allow input on any areas of interest or concern
which may include fraud or other unethical industry activities. The SRO may also help investors
understand how their investments work and advise on methods to mitigate potential risks associated
with the securities industry
, FINRA - ANSWER-Financial Industry Regulatory Authority. Regulates all matters related to investment
banking, trading in the OTC market, trading in NYSE listed securities, and conduct of FINRA member firms
and associated persons. Also regulates investment companies and limited partnership transactions
MSRB - ANSWER-Municipal Securities Rulemaking Board. Regulates all matters related to the
underwriting and trading of state and municipal securities. Does not have enforcement powers and
depends on other SROs for the enforcement of its rules
CBOE - ANSWER-Chicago Board Options Exchange. Regulates all matters related to trading standardized
options and related contracts listed on that exchange.
Municipal Securities - ANSWER-A municipal bond, commonly known as a muni bond, is a bond issued by
a local government or territory, or one of their agencies. It is generally used to finance public projects
such as roads, schools, airports and seaports, and infrastructure-related repairs
IRS - ANSWER-The Internal Revenue Service (IRS) is responsible for the determination, assessment, and
collection of internal revenue in the United States.
This revenue consists of personal and corporate income taxes, excise, estate, and gift taxes, as well as
employment taxes for the nation s Social Security system
The U.S. Treasury - ANSWER-Is the government department responsible for issuing all Treasury bonds,
notes and bills. Among the government departments operating under the U.S.
Treasury umbrella are the Internal Revenue Service (IRS), the U.S
State Regulator - ANSWER-State regulators supervise over 3/4 of the nation's banks, and license
thousands of non-banks to operate in their state. Each state has a state banking department that:
Monitors safety and soundness of chartered institutions. Ensures that financial institutions are operating
within the law
The Federal Reserve - ANSWER-influences the supply of money and credit; regulates and supervises
financial institutions; serving as a banking and fiscal agent for the United States government; and
supplying payments services to the public through depository institutions like banks, credit
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