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. A mutual fund that trades on an exchange throughout the day like a stock is called a(n): → Exchange-traded fund (ETF)
7. To combat rising inflation, the Federal Reserve would most likely: → Sell government securities on the open market
8. A letter of intent (LOI) in mutual fund investing allows a shareholder to: → Qualify for a breakpoint discount over a 13-month investment period
9. What is a debenture? → An unsecured bond backed only by the issuer's creditworthiness
10. Under the Bank Secrecy Act, currency transaction reports (CTRs) must be filed for cash transactions exceeding: → $10,000
11. Which of the following is a characteristic of preferred stock compared to common stock? → Priority dividend payments
12. What is the par value of a standard corporate bond? → $1,000
13. Under the Securities Act of 1933, the registration statement filed with the SEC for a new securities offering includes: → A prospectus disclosing material information about the offering
14. The Investment Advisers Act of 1940 requires investment advisers to act in their clients' best interests under the: → Fiduciary standard
15. A call option gives the holder the right to: → Buy shares at the strike price
16. The Dow Jones Industrial Average (DJIA) is best described as a: → Price-weighted index of 30 large U.S. companies
17. What is a unit investment trust (UIT)? → An investment company with a fixed, unmanaged portfolio that terminates on a set date
18. Which of the following best describes a 'bear market'? → A market declining 20% or more from recent highs
19. Under the Investment Company Act of 1940, a mutual fund must redeem shares at: → Net Asset Value (NAV)
20. Which self-regulatory organization (SRO) has primary responsibility for overseeing broker-dealers in the United States? → FINRA
21. What distinguishes a hedge fund from a registered mutual fund? → Hedge funds are not registered with the SEC and are limited to accredited investors
22. 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.
23. Under SEC Rule 144, how long must an affiliate hold restricted securities before selling them in the public market? → 6 months
24. Regulation NMS (National Market System) was designed primarily to: → Promote fair competition and best execution across equity markets
25. The process by which a company first sells shares to the public is known as a(n): → Initial public offering (IPO)
26. Which regulatory body has jurisdiction over variable annuities and variable life insurance products? → Both the SEC and FINRA, as well as state insurance regulators
27. What is a warrant in the context of securities? → A long-term option to buy shares at a fixed price
28. Under Regulation T, the Federal Reserve Board sets the initial margin requirement for purchasing equity securities at: → 50%
29. A pattern day trader is defined as someone who executes how many or more day trades within five business days? → 4
30. A registered representative who moves from one broker-dealer to another must: → Transfer registration via FINRA's CRD system