Under Rule 506(b) of Regulation D, an issuer may sell to:

Unlimited accredited investors and up to 35 non-accredited but sophisticated investors, without general solicitation

Unlimited investors of any type, using general solicitation

Only accredited investors, using general solicitation with verification

Up to 35 accredited investors and unlimited non-accredited investors

Which economic indicator is generally classified as a LEADING indicator?

Building permits for new private housing

Average duration of unemployment

Commercial and industrial loans outstanding

When a company's common stock rises well above the conversion price of its convertible preferred, the convertible preferred's market price will tend to:

Rise along with the value of the common it converts into

Stay near par because the dividend is fixed

Fall because conversion becomes less likely

Relative to a company's common stock and bonds, where does preferred stock stand?

Ahead of common stock but behind bonds for dividends and liquidation

Ahead of bonds but behind common stock

Ahead of both common stock and bonds

Behind both common stock and bonds

An investor owns 400 shares trading at $3. The company executes a 1-for-4 reverse split. After the split, the investor owns:

100 shares at approximately $12

1,600 shares at approximately $0.75

400 shares at approximately $12

Which statement about Treasury STRIPS is TRUE?

They are zero-coupon securities, so investors holding to maturity face no reinvestment risk

They pay semiannual interest at a floating rate

They are sold directly by the Treasury at auction as zero-coupon bonds

They are backed by pools of home mortgages

SIE Cheat Sheet

The SIE formulas and numbers worth memorizing, each with a worked example and the rule or regulator it comes from, updated for 2026 changes.

Updated 2026-09-23 · 12 sources · By the SeriesPrepKit team

Formulas and concepts, with worked examples

Current yield - Annual interest / market price

Example: A 5% bond ($50/year) priced at $1,000 x 0.92 = $920: current yield = 50 / 920 = 5.43%. Price below par, so current yield is above the coupon.

Bond price vs. yield - Price and yield move in opposite directions

Example: Rates rise, existing bond prices fall. A discount bond has YTM > current yield > coupon; a premium bond is the reverse.

Mutual fund sales charge % - (POP - NAV) / POP

Example: NAV $19.00, POP $20.00: sales charge = 1.00 / 20.00 = 5% (always divide by the offering price).

Stock split - New shares = old x ratio; new price = old / ratio

Example: 100 shares at $60 with a 3-for-2 split: 150 shares at $40. Total value unchanged at $6,000.

Long call breakeven - Strike + premium

Example: Buy 1 XYZ 50 call for $3: breakeven $53; max loss $300 (premium x 100 shares).

Numbers and deadlines to memorize

Rules change. Figures verified 2026-09-23; FINRA and NASAA update exam content on their own schedule after a rule change, so check each exam page before your test.
Item	Number / rule	Source
Settlement, regular way	T+1 for most securities (since May 28, 2024)	SEC
Currency Transaction Report	Cash over $10,000 in a day	FinCEN
Broker-dealer SAR threshold	$5,000 in suspicious activity	FinCEN
SIPC protection	Up to $500,000 per customer, including a $250,000 limit for cash	SIPC
Reg T initial margin	50% of purchase price	Federal Reserve Regulation T (12 CFR Part 220)
FINRA minimum margin equity	$2,000 to open (FINRA Rule 4210)	FINRA Rule 4210
Rule 144 holding period	6 months (reporting issuer) or 1 year (non-reporting) for restricted stock	SEC Rule 144 (17 CFR 230.144)
Accredited investor (natural person)	$200,000 income ($300,000 joint) in each of the last 2 years, or $1 million net worth excluding primary residence	SEC Rule 501
FINRA gift limit	$300 per person per year (raised from $100, effective March 30, 2026)	FINRA Regulatory Notice 26-05
2026 IRA contribution limit	$7,500 ($1,100 catch-up at 50+)	IRS
SIE validity	4 years from passing	FINRA

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Frequently asked questions

Can I bring a cheat sheet into the SIE?

No. Reference materials are not permitted in the testing session; this sheet is for studying only.

Is there a lot of math on the SIE?

Some: yields, sales charges, splits and basic options breakevens.

Sources

FINRA - Securities Industry Essentials (SIE) Exam (accessed 2026-09-23)
FinCEN - Currency Transaction Report rule (31 CFR 1010.311) (accessed 2026-09-23)
IRS - 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 (accessed 2026-09-23)
SEC Rule 144 (17 CFR 230.144) (accessed 2026-09-23)
FINRA Regulatory Notice 26-05 - Gifts Rule amendments ($300 limit, effective March 30, 2026) (accessed 2026-09-23)
FINRA Rule 4210 - Margin Requirements (accessed 2026-09-23)
SEC Rule 501 - Accredited investor definition (17 CFR 230.501) (accessed 2026-09-23)
Federal Reserve Regulation T (12 CFR Part 220) (accessed 2026-09-23)
FinCEN - SAR rule for broker-dealers (31 CFR 1023.320) (accessed 2026-09-23)
FINRA - SIE Exam and Exam Restructuring FAQ (accessed 2026-09-23)
SIPC - What SIPC Protects (accessed 2026-09-23)
SEC - Shortening the securities settlement cycle to T+1 (compliance date May 28, 2024) (accessed 2026-09-23)