Securities Exchange Acts: Basic Knowledge

In order to become a securities industry professional, you must pass the SIE (Securities Industry Essentials) exam. This is a requirement for anyone looking to work in the investment banking, asset management, or securities industries. The SIE exam covers basic knowledge about the securities exchange acts and how they are applied. In this blog post, we will go over some of the key sections of the Securities Exchange Act of 1934 that are covered on the SIE exam. We will also provide examples so that you can better understand how these sections apply in real-world situations. Good luck on your SIE exam!

The Securities Exchange Act of 1934 was created in order to establish regulatory guidelines for the securities industry. This act is composed of several key sections that govern everything from registration requirements for securities, to the regulation of brokers and dealers, to post-filing free writing prospectuses in certain situations. A real world example of how these sections might be applied is in a company merger or acquisition. This process would require regulatory approval from the SROs (self-regulatory) and may also require brokers to submit a prospectus or other documentation for review.

Some of the most important sections of the Securities Exchange Act of 1934 include Section 3(a), which defines and lays out the application of various provisions within this act. Other key sections include Section 12, which outlines registration requirements for securities; Section 15, which deals with regulations governing broker-dealers; and Section 15A, which covers registered securities associations.

In addition to these core sections, there are also several other provisions laid out under Regulation D. This includes rules governing limited offerings of securities without registration under the Securities Act of 1933, as well as provisions related to 144, 144A, 145, and 147 

The Securities Act of 1933 was designed to protect investors by requiring companies to register new securities with the government before they can be sold to the public. For example, if a company is planning to issue new stock or bonds, it must submit a prospectus that contains information about the company’s financial and business history, as well as the terms of the offering. This ensures that investors have access to important information before they make a decision about whether or not to invest in a particular company or security.

If you are preparing for the SIE exam, it is important to have a solid understanding of the Securities Exchange Act of 1934 and the Securities Act of 1933, as well as the various provisions that govern these important pieces of legislation. These are not, however, the only topics that will be covered on the exam. Other topics include market structure, industry regulations and standards, investor protections, and more. Achievable offers comprehensive SIE exam prep to prepare you for the SIE Exam. Whether you are a current industry professional looking to earn your SIE certification, or a new graduate looking for a career in the financial services sector, Achievable can help you to prepare for success on the SIE exam. Visit our website today to learn more about our SIE test prep materials and services.