The SIE Exam’s most important sections are constantly confused by students. Why are they so confusing? Let’s break it down.
SIE Exam Most Important Sections: By Topic
There is a distinct difference between the sections of the SIE Exam where you should focus your energy, and what you should expect on the exam. For one, Options can take quite a while to understand. The proportion of time needed to understand the SIE Options section may not align with the proportion of Options questions covered on the exam. Other sections, however (E.g., such as Equities) may be easier to understand. These sections may show up just as much as Options questions.
All in all, the SIE Exam difficulty level is hard to gauge because it is such a broad exam. It’s meant to be introductory and therefore cover a little of everything. A little on Options, Fixed Income, Equities, Customer Accounts, Economics, etc. So even though, as we describe below, FINRA gives you hints of what to expect, there’s more to it than meets the eye.
Doesn’t FINRA Tell You What’s On the Exam?
Many students I tutor that ask me to focus on the specific areas of the exam which FINRA highlights on its website. The reality is that it’s not so clear cut.
On FINRA’s website, you will see that the test is broken into a number of sections with “Understanding Products and Their Risks” at 44% of the exam, and “Understanding Trading, Customer Accounts, and Prohibited Activities” at 31% of the exam. This is 75% of the exam covered by very broad categories that…don’t tell you much!
While some SIE text providers give their best guess at what these sections include, there is no official outline designated by FINRA. One provider considers “Understanding Products and Their Risks” as Equities, Debt (Corporate, Muni, Federal), Packaged Products, Annuities, Alternative Investments, Options, and Investment Risks. Others have their own interpretation. There are a whole slew of curriculum providers out there and even the most obscure have nice breakdowns. So what should you do?
So What Should I Do?
Your best bet is not the one you might like to hear. That is, take a comprehensive approach and study everything!
You will see from the SIE practice exam on FINRA’s website that it is a pot pourri of topics. There is no single category that shows up a good percentage of the time.
Any effective study strategy involves some discipline. Make sure to exercise said discipline, and start studying as early as possible. Read the text at least once, and taking a lot of practice questions. Most people can get through the SIE if they really put their mind to it. It might take you two weeks, two months, or longer. It really depends on where you’re at in your career and education level. Take it one topic at a time, and know where you might need help (Options anyone?!). When compared to how to studying for the Series 7 Top Off exam might be, the SIE is a whole different ballgame.
Hint: It’s shorter and may have less math!
To sum up, avoid concentrating on any specific topic for the SIE Exam. Take a comprehensive approach and practice, practice, practice…questions. Good luck!