Trading, Customer Accounts & Prohibited Activities: Securities Industry Essentials (SIE) topic guide
Trading, Customer Accounts & Prohibited Activities carries 31% of the Securities Industry Essentials (SIE) blueprint used in this course, the second-largest of its 4 weighted areas. It spans 20 concepts. The course teaches it in 3 study units: Trading & Market Mechanics, Customer Accounts and Prohibited Activities & AML.
What Trading, Customer Accounts & Prohibited Activities covers
- What is the difference between a market order and a limit order? — FINRA SIE Content Outline §3
- How do stop orders and stop-limit orders work? — FINRA SIE Content Outline §3
- What are bid, ask, and spread? — FINRA SIE Content Outline §3
- How do exchanges differ from OTC markets? — FINRA SIE Content Outline §3
- What is the difference between the primary and secondary market? — FINRA SIE Content Outline §3
- What does it mean to be long or short a security? — FINRA SIE Content Outline §3
- What is a cash account and how does it work? — FINRA SIE Content Outline §3
- What is a margin account and what does Regulation T require? — Regulation T
- What is the difference between JTWROS and TIC joint accounts? — FINRA SIE Content Outline §3
- What is a UGMA/UTMA custodial account? — FINRA SIE Content Outline §3
- How do Traditional and Roth IRAs differ? — IRC §§ 408, 408A
- What is a discretionary account and what is a fiduciary? — FINRA Rule 3260
- What is insider trading? — Securities Exchange Act of 1934 §10
- What is front-running? — FINRA Rule 5320
- What is churning? — FINRA Rule 2111
- What is market manipulation, and what is a pump-and-dump? — Securities Exchange Act of 1934 §9 & §10
- What are AML, the BSA, and the Customer Identification Program? — Bank Secrecy Act
- What is a Suspicious Activity Report and how does it differ from a CTR? — 31 USC 5318
- What are the key rules on books & records, outside business activities, and gifts? — SEC Rules 17a-3 & 17a-4
- What rules govern communications with the public, trade confirmations, and account statements? — FINRA Rule 2210
Official references for Trading, Customer Accounts & Prohibited Activities
- FINRA SIE Content Outline: §3
- Regulation T
- IRC §§ 408: 408A
- FINRA Rule: 3260, 5320, 2111, 2210
- Securities Exchange Act of 1934: §10
- Securities Exchange Act of 1934 §9 &: §10
- Bank Secrecy Act
- 31 USC: 5318, 5313
- SEC Rules 17a-3 &: 17a-4
- SEC Release No.: 34-96930
- 50 USC 1701 et seq
In the app this area comes with 23 memory cards and 23 module-quiz questions in the full course.