SIE Key Vocabulary
Essential terms and definitions you must know before exam day.
Key Vocabulary
FINRA
Financial Industry Regulatory Authority — the SRO that regulates broker-dealers.
SIPC
Securities Investor Protection Corporation — insures brokerage accounts against broker failure (not market loss).
Churning
Excessive trading in a customer account primarily to generate commissions — a prohibited practice.
Suitability
FINRA requirement to recommend only securities that match the customer's financial profile.
Vocabulary Study Tips
- 1.Focus on the four exam sections proportionally — Knowledge of Capital Markets is the largest.
- 2.Learn the key FINRA rules by number: 2111 (suitability), 4370 (business continuity), 3110 (supervision).
- 3.Options math is commonly tested — master break-even, max gain, max loss for calls and puts.
- 4.Use Kaplan or Securities Institute of America (SIA) materials.