SIE Cheat Sheet 2026

The 30 highest-yield SIE facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. A discretionary account allows a broker to: → Trade customer funds without prior approval for each transaction
2. What is the accumulation phase of an annuity? → The period during which premiums are paid and the account value grows
3. Dark pools are best described as: → Private trading venues that do not display quotes publicly
4. Which of the following is a characteristic of a Real Estate Investment Trust (REIT)? → REITs must distribute at least 90% of taxable income to shareholders
5. What is a Uniform Gifts to Minors Act (UGMA) account? → A custodial account holding assets for a minor, managed by an adult custodian
6. To combat rising inflation, the Federal Reserve would most likely: → Sell government securities on the open market
7. A letter of intent (LOI) in mutual fund investing allows a shareholder to: → Qualify for a breakpoint discount over a 13-month investment period
8. What is a debenture? → An unsecured bond backed only by the issuer's creditworthiness
9. Under the Bank Secrecy Act, currency transaction reports (CTRs) must be filed for cash transactions exceeding: → $10,000
10. What is the par value of a standard corporate bond? → $1,000
11. A call option gives the holder the right to: → Buy shares at the strike price
12. What is a unit investment trust (UIT)? → An investment company with a fixed, unmanaged portfolio that terminates on a set date
13. What distinguishes a hedge fund from a registered mutual fund? → Hedge funds are not registered with the SEC and are limited to accredited investors
14. FINRA would compel an investment manager to report on every activity listed below, with the exception of: → A misdemeanor DUI offense results in the arrest of a firm employee.
15. Which regulatory body has jurisdiction over variable annuities and variable life insurance products? → Both the SEC and FINRA, as well as state insurance regulators
16. What is a warrant in the context of securities? → A long-term option to buy shares at a fixed price
17. A pattern day trader is defined as someone who executes how many or more day trades within five business days? → 4
18. A tenants in common (TIC) account differs from JTWROS in that: → Each TIC owner's share passes to their estate upon death, not to co-owners
19. Net Asset Value (NAV) per share is calculated as: → (Total assets minus total liabilities) divided by shares outstanding
20. Cumulative preferred stock means that if a dividend is missed, it must be: → Paid before any common dividends in the future
21. Which type of bond is backed by the full faith and credit of the US government? → US Treasury securities
22. Which answer accurately sums up a margin account? → Brokers lend money to investors, who use it for trading.
23. Expansionary fiscal policy is best described as: → Decreasing taxes and/or increasing government spending to stimulate the economy
24. Which type of investment company continuously offers shares and redeems them at NAV? → Open-end management company (mutual fund)
25. A stop order (stop-loss order) becomes a market order when: → The security's price reaches or passes the stop price
26. What must occur before a broker-dealer executes an options trade in a customer's account? → Options agreement must be signed and account must be approved for options trading
27. Which of these describes an Exchange-traded fund's (ETF) drawback? → Expenses of trading versus stocks
28. A futures contract obligates the buyer to: → Purchase the underlying asset at a specified price on a future date
29. At expiration, an option that is 'out of the money' will typically: → Expire worthless
30. A variable annuity differs from a fixed annuity in that: → Variable annuity returns depend on the performance of underlying investment subaccounts