The Securities Industry Essentials (SIE) exam is absolutely necessary for any individual who’s interested in joining the securities industry.
However, be aware, the exam isn’t easy and many people fail it. There are a number of reasons why people fail the SIE Exam, but if you learn to avoid the pitfalls, you’ll certainly succeed.
Achieving SIE Exam Success
FINRA’s purpose for introducing the SIE Exam is for candidates to be tested on fundamental securities industry rules and regulations, as well as basic product information for stocks, bonds, mutual funds, etc. The exam consists of 75 multiple-choice questions and candidates are allotted 105 minutes to complete it. The minimum required passing score is 70%.
Why Do People Fail the SIE Exam?
Unfortunately, many people do fail the SIE Exam and listed below are some of the typical reasons:
- Not studying
- Not studying the right material
- Not completing practice tests
- Not asking for help
- Memorizing facts rather than understanding the material
How to Pass the SIE Exam
1: Study
According to Professional Exam Tutoring, the amount of study time a person needs is dependent on his prior knowledge. So, be honest with yourself. If you’re not yet comfortable with the basics (such as the definition of a “bond” or “stock”), then you should plan on studying for at least two months. However, the optimal time is actually based on when you begin to feel confident with the material.
2: Study the right material
The study material you choose will greatly influence your chances of success. Be sure to spend your time studying from the best material.
Securities Training Corporation (STC) has great resources to help you pass your exam. STC’s material is proven to effectively explain relevant subject material.
3: Use practice tests
To truly understand the exam content, STC also provides eight appropriate practice exams. All of the exams should be completed so that you gain confidence with your knowledge of the material. Another recommended resource is the practice test that FINRA makes available on its website (FINRA.org).
Here’s a tip: To increase your chances of passing the actual exam, strive to achieve scores of 85% or better on your practice exams.
4: Get help if necessary
There are tutors and resources available that can help you better understand the information and prepare for the test. Don’t be afraid to reach out to Securities Training Corporation to take advantage of these resources.
5: Understand what you’re studying
Rather than simply memorizing material, strive to understand it. Understanding it will increase your chances of success on the exam and will also help as your career continues.
FAQs About SIE Exam Success
1. What is the purpose of the SIE Exam?
The SIE Exam tests fundamental knowledge of securities industry rules, regulations, and basic product information such as stocks, bonds, and mutual funds.
2. How is the exam structured?
The exam consists of 75 multiple-choice questions, with candidates given 105 minutes to complete it. A minimum score of 70% is required to pass.
3. Why do people fail the SIE Exam?
Common reasons include not studying, not using the right materials, skipping practice tests, avoiding help, and focusing on memorization instead of understanding.
4. How much time should I dedicate to studying?
Study time varies depending on your prior knowledge. If you’re a beginner, aim for at least two months of study.
5. What should I look for in study materials?
Choose high-quality, proven resources to ensure effective preparation. Securities Training Corporation (STC) offers reliable study guides and tools.
6. Are practice tests important?
Yes, completing practice tests is critical. Aim to achieve scores of 85% or higher on practice exams to increase your confidence and success rate.
7. Where can I find practice tests?
Practice exams are available from STC and FINRA’s website. Use these to familiarize yourself with the exam structure and content.
8. What should I do if I’m struggling to understand the material?
Seek assistance through tutors or other resources. STC offers support to help clarify concepts and improve comprehension.
9. Is it better to understand the material or memorize it?
Focus on understanding the material rather than just memorizing it. This approach improves your chances of passing and benefits your career in the long run.
10. How can STC help me prepare for the SIE Exam?
STC provides resources like study guides, practice tests, and personalized support to ensure you’re well-prepared for the exam. Reach out to them for assistance.
Resources for SIE Exam Success
- Guide: Free Interactive SIE Study Guide
- Guide: Free SIE Exam Guide
- Article: What is the SIE Exam?
- Article: Your Guide to Developing a Study Plan for the SIE Exam
- Article: The Importance of SIE Exam Prep
- Article: Common Mistakes to Avoid When Studying for the SIE Exam
- Article: Why Obtaining Your SIE in College Matters
- Infographic: SIE Exam Key Facts and Figures
Get the help you need from Securities Training Corporation
Securities Training Corporation is here to help you succeed, which is why we’re thrilled to give you the tips and information you need to prepare for and pass the exam. If you have any questions, or if you need further assistance with the SIE Exam, please contact Securities Training Corporation.
