About this episode
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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