This page offers flashcards, quizzes, and a glossary to help you master SIE Chapter 3. Learn about trading processes, customer accounts, margin regulations, and prohibited activities like insider trading. These tools will help reinforce key concepts and prepare you for the SIE exam.
Test your knowledge with these practice questions
Important concepts to remember
An instruction to buy or sell a security immediately at the best available price.
An instruction to buy or sell a security at a specified price or better.
The difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept.
The sale of borrowed securities with the expectation that their price will decrease, allowing the seller to repurchase them at a lower price.
An account that allows investors to borrow funds from a broker to purchase securities, using the securities as collateral.
Regulations requiring financial institutions to verify the identity of their clients to prevent fraud, money laundering, and terrorism financing.
The illegal practice of trading securities based on material, non-public information.
The act of artificially influencing the price or supply of a security to deceive other traders or the market.
A Federal Reserve rule that sets the initial margin requirements for securities purchases on margin accounts.
A financial institution that acts as an intermediary between buyers and sellers in financial markets to ensure the proper settlement of trades.
An account in which a broker has the authority to make buy and sell decisions without prior client approval.
A U.S. law that established the SEC and regulated the secondary trading of securities to prevent fraud and ensure market transparency.
A process where majority shareholders pressure minority shareholders to sell their shares, often through actions that make retaining ownership undesirable.
Stocks of small companies that typically trade for less than $5 per share, often considered high-risk investments.
A legal document issued by companies offering securities, detailing the company's financials, operations, and risks involved in the investment.
