How Many Questions Are on the SIE Exam?
Understand the SIE Exam's structure, scoring, and content. Prepare effectively for this foundational financial industry qualification.
The Securities Industry Essentials (SIE) Exam serves as an introductory-level assessment for individuals aspiring to enter the financial services industry. It evaluates a candidate’s basic understanding of the securities industry. Passing the SIE indicates a fundamental understanding of the capital markets and is a prerequisite for further qualification exams. However, passing the SIE alone does not qualify an individual to conduct securities business or register with a FINRA member firm; a co-requisite “top-off” exam is necessary.
Exam Structure and Question Count
The SIE exam consists of a total of 85 multiple-choice questions. Among these, 75 questions are scored and directly contribute to a candidate’s final score. The remaining 10 questions are unscored, used by FINRA to test new questions for potential inclusion in future exams. Candidates will not know which questions are unscored, so it is important to treat every question as if it counts towards the final score.
Candidates are allotted 1 hour and 45 minutes (105 minutes) to complete the entire examination. Each question is presented in a multiple-choice format.
Scoring and Passing Requirements
The SIE exam is scored on a scaled basis, and a candidate must achieve a minimum score of 70% to pass. Only the 75 scored questions are factored into this final percentage. The 10 unscored questions do not influence the pass or fail outcome. FINRA provides a “pass” or “fail” result immediately upon completion of the exam.
Passing the SIE exam makes an individual eligible to take co-requisite qualification exams, which are required for specific roles within the securities industry. Should a candidate not pass the SIE, a waiting period is imposed before a retake is permitted. After the first and second failed attempts, a 30-day waiting period applies. If a candidate fails the exam a third time, the waiting period extends to 180 days before another attempt can be made.
Exam Content Areas
The SIE exam covers four main content areas, providing a broad overview of the securities industry. These areas are designed to assess a candidate’s fundamental knowledge across various aspects of capital markets.
The first section, “Knowledge of Capital Markets,” focuses on the structure and function of the securities industry, including regulatory entities, market participants, and types of markets. This segment also addresses economic factors that influence market activity. “Understanding Products and Their Risks” covers various investment products such as equities, debt instruments, options, and packaged products, along with their associated risks.
Another significant area is “Understanding Trading, Customer Accounts, and Prohibited Activities.” This section delves into the mechanics of trading, different types of customer accounts, and practices that are forbidden within the industry. Finally, “Overview of Regulatory Framework” provides an understanding of the regulatory landscape governing the securities industry, including the roles of various regulatory agencies and specific rules and regulations that professionals must adhere to.