Understanding Products and Their Risks

The heaviest section by far: 33 of the 75 scored questions on the products themselves — equity and debt securities, mutual funds and other packaged products, options — and the specific risks each one carries. If you master one section, make it this one.

Study sets

Debt Securities Hard

Hunt down the bond market's core vocabulary: par and coupons, the price–yield seesaw, yield measures, Treasuries, munis, corporates, callables and convertibles, money-market paper, and credit ratings.

9 terms
Equity Securities Medium

Find the language of stock ownership: common and preferred shares, rights and warrants, ADRs, dividends and their dates, splits, buybacks, and Rule 144 stock.

8 terms
Funds & Packaged Products Medium

Track down the pooled vehicles the SIE tests hardest: mutual funds and share classes, closed-end funds, ETFs, UITs, annuities, REITs, 529 plans, and hedge funds and DPPs.

9 terms
Investment Risks Medium

Hunt down the risk taxonomy behind every SIE suitability question: systematic vs. nonsystematic, market, interest-rate and reinvestment, credit, inflation, liquidity, and currency and political risk.

7 terms
Options Basics Hard

Find the building blocks of listed options: calls and puts, premiums and intrinsic value, covered calls, protective puts, exercise and assignment, and the OCC and ODD.

7 terms

Terms glossary