Intro to the SIE Exam 8/24/2024

SIE exam overview part 1 Podcast episode 

 major securities regulations (Securities Acts of 1933, 1934, etc.) and their key provisions
  - Detailed explanations were provided on different types of securities including stocks, bonds, options, and their characteristics
  - Math concepts related to securities pricing, yields, and options were demonstrated
  - Practice questions were reviewed to show how concepts may be tested on the SIE exam

Topics

Securities Regulations

  - Securities Act of 1933 covers primary market and new securities issuance
  - Securities Act of 1934 created the SEC and regulates the secondary market
  - Other key acts include Investment Company Act of 1940 and Investment Advisers Act of 1940

Equity Securities

  - Common stock provides ownership, voting rights, potential dividends
  - Preferred stock provides fixed dividends, no voting rights
  - ADRs allow trading foreign stocks on US exchanges
  - Rights offerings allow existing shareholders to maintain ownership percentage

Debt Securities

  - Corporate bonds, municipal bonds, and US Treasuries discussed
  - Key concepts: par value, coupon rate, yield, call provisions
  - Risks include interest rate risk, credit risk, reinvestment risk

Options

  - Calls provide right to buy, puts provide right to sell
  - Key terms: strike price, premium, expiration, intrinsic value
  - Buying options limits risk to premium paid
  - Selling options has potentially unlimited risk

Calculations

  - Stock splits, dividends, and rights offerings
  - Bond yields - current yield, yield to maturity, yield to call
  - Options pricing and breakeven points

Next Steps

  - Review practice questions, especially on topics like options and bond yields
  - Focus on memorizing key regulatory acts and their provisions
  - Practice calculations for stock splits, dividends, bond yields, etc.
  - Review risks associated with different security types

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