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Florida Memorial University, InspereX, and Solomon Exam Prep Bring SIE Exam Prep to FMU Students

With sponsorship from InspereX, FMU students will receive the Solomon study materials and exam fee they need to pass the FINRA Securities Industry Essentials (SIE) Exam. Continue reading

Solomon Exam Prep is pleased to announce a partnership with Florida Memorial University and InspereX to support FMU School of Business students in preparing for and taking the FINRA Securities Industry Essentials (SIE) Exam. Through this partnership, FMU is offering an SIE Self-Study Program led by Visiting Instructor of Finance and Marketing, Lawrence Goehrig, in Spring 2022.

Thanks to the generosity of InspereX, FMU students will receive the top-of-the-line Solomon SIE Total Study Package. InspereX is also funding the purchase of hardcopy Study Guide upgrades for all students in the program, plus the FINRA SIE Exam fee, which is $80.00 per student.

Solomon Exam Prep President Jeremy Solomon says

“Solomon is honored to work with FMU and InspereX to help prepare students to take the FINRA SIE Exam. The SIE is the foundational exam required for anyone who wants to become licensed to work in the securities industry, and passing the SIE exam will give FMU students a competitive edge in the job market.”

Geared to fit a variety of learning styles, the Solomon SIE Exam Total Package includes the full line of Solomon SIE materials: digital Study Guide, Exam Simulator, Audiobook, Video Lecture with downloadable slides, and digital Flashcards. Students will also be able to take advantage of free resources and tools, including Solomon Study Schedules and Solomon Pass Probability™ technology. And with access to the Solomon Instructor Admin Portal, Professor Goehrig will be able to monitor his students’ progress to assist them as they study.

Florida Memorial University, founded in 1879, is one of the oldest academic centers in Florida, and is the only historically Black university in southern Florida. The university offers 27 undergraduate degree programs and three master’s programs.

InspereX is a leading fintech transforming how fixed income securities and market-linked products are accessed, evaluated, and traded. The firm has principal offices in Delray Beach, San Francisco, Chicago, and New York City.

About Solomon Exam Prep

Founded by Karen Solomon (Ph.D., University of Chicago) and Jeremy Solomon (MBA, Wharton), Solomon Exam Prep has helped thousands pass their securities licensing exams including the SIE, Series 3, 6, 7, 14, 22, 24, 26, 27, 28, 50, 51, 52, 53, 54, 63, 65, 66, 79, 82 and 99.

Solomon Exam Prep partners with dozens of colleges and universities to bring the Solomon SIE exam prep program to students across the country. Join institutions such as Florida Memorial University, Pepperdine University, the University of North Carolina at Pembroke, University of Delaware, Adelphi University, University of Nebraska-Omaha, Seton Hall University, Ohio Dominican University, Georgetown University, Widener University, and University of Dallas in partnering with Solomon.

To learn more about the ways colleges and universities can partner with Solomon, contact Beth Hamilton, Higher Education Development Manager, at beth@solomonexamprep.com or 503-601-0212.

Solomon Exam Prep Launches Investment Adviser Representative CE

Solomon’s NASAA-approved IAR CE courses are now available for investment adviser representatives who must complete the new CE requirement for 2022. Continue reading

Solomon Exam Prep is excited to announce the launch of its Investment Adviser Representative Continuing Education (IAR CE). All Solomon IAR CE courses are approved by the North American Securities Administrators Association (NASAA) and earn credit to fulfill the new, annual CE requirement for IARs (Investment Adviser Representatives).

About Solomon IAR CE

As a leader in securities exam prep, including the NASAA Series 63, Series 65, and Series 66, Solomon brings the same level of expertise to creating high quality IAR CE content. Course content is delivered in self-paced online modules accessible on any web-enabled device, so you can study when and where you like. Short, engaging modules use a read-and-quiz format that results in higher retention for better learning. Plus, the user-friendly platform allows you to easily jump into the course and start learning.

Solomon’s on-demand courses can be purchased individually, or through a membership to the entire course library to complete all your IAR CE in one place. The Solomon IAR CE platform helps guide course selection for you so that you know you are taking the right number of credits in the required course categories.

Curious about Solomon’s IAR CE courses? Explore the Solomon IAR CE course library.

IAR CE FAQs (frequently asked questions)

Solomon has compiled some of the most common frequently asked questions about the new IAR CE requirement and how Solomon IAR CE works:

Why is there a new CE requirement for IARs?

CE courses are designed to keep a financial professional up to date on industry developments, current regulations, and ethical standards. NASAA received support from state regulators and the securities industry for the creation of a CE program to ensure that IARs, like broker-dealer agents, insurance agents, certified financial planners, and real estate agents, maintain or expand their level of knowledge and competence throughout their careers.

Who must complete IAR CE?

Every investment adviser representative (IAR) registered in a jurisdiction that adopts the NASAA model rule is subject to the CE requirement. The requirement applies to all registered IARs of both state-registered and federal-covered investment advisers. IARs must meet the CE requirements of any state in which the IAR is registered.

When do IARs need to start complying with the CE program?

Compliance starts in the 2022 calendar year in states that have adopted the model rule with an effective date of January 1, 2022. To view the states that adopted the new CE requirement, see the NASAA website or the Solomon IAR CE webpage. CE credits must be reported by the end of each calendar year. Newly registered IARs must meet the annual IAR CE requirement by the end of the first full calendar year following the year in which they first become registered.

How many courses do I have to take?

You have to complete 12 credits of CE coursework per year. Six of the 12 credits must be in the Products and Practices category. The other six credits must be in the Ethics and Professional Responsibility category, at least three of which must specifically be about ethics. The category that each course belongs to is indicated in the Solomon IAR CE course library. All Solomon courses are at least one credit.

Where can I take NASAA-approved courses?

NASAA has approved several vendors to provide IAR CE courses, including Solomon Exam Prep. All of the courses in the Solomon IAR CE library have passed an approval process with NASAA and Prometric, the course management vendor.

How are the courses delivered?

Solomon Exam Prep’s IAR CE courses are delivered online and are self-paced, so students can study when and where they like.

Do I have to pass an assessment to complete a course?

Yes, every course has an assessment that is at least 10 questions in length. In Solomon IAR CE courses, the assessment is broken up into shorter assessments that appear throughout the course, instead of a single assessment at the end of the course. You must pass assessments with a score of 100%, and you have an unlimited number of attempts. You may also be asked to complete a satisfaction survey as part of the course activities.

If I earn more than 12 IAR CE credits in a calendar year, can I carry over extra credits to the next year?

No, credits earned beyond the 12 required credits do not carry over into a subsequent year.

What happens if I do not complete the IAR CE requirement by the end of the calendar year?

You will be required to pay the registration renewal fee, and CRD will set your IAR CE status to “CE Inactive.” This status will appear in the Investment Adviser Public Disclosure (IADP) and in BrokerCheck. You can continue to do business; however, if IAR CE is not completed by the end of the subsequent year, you will not be able to renew your registration. An IAR that is CE Inactive will hold that status in all states where the CE rule is effective following adoption of the model. If a state has not yet adopted the CE model rule, the CE program will have no impact on the registration status of the IARs registered with that state – the current registration practices will remain the same.

Do I need to make up missed CE credits?

Yes. If you complete courses in the current year, those credits will first apply to the previous year if you hadn’t completed 12 credits in the previous year. Once the missing credits for the previous year have been completed, then additional courses taken in the current year will apply to the current year’s requirement. Remember that any excess credits completed in a year will not carry forward to the next year.

Who reports course completion?

The course provider (i.e. Solomon Exam Prep) reports course completion to FINRA, NASAA’s vendor for program tracking. IARs should still keep a record of their completed courses for their own records. Solomon Exam Prep will distribute a course completion notice, once credits are reported, for this reason.

Is there a reporting fee?

Yes, the reporting fee, also known as the roster fee, is $3 per credit hour. For Solomon IAR CE courses, the reporting fee is included in the cost of the course or membership. Solomon submits the reporting fee and course completion information to FINRA, the manager of NASAA’s CE reporting database.

How do I make sure my completion of the annual IAR CE requirement is shown in FINRA’s CE reporting database?

The course provider (i.e. Solomon Exam Prep) is responsible for reporting successful completion information to both the IAR and to FINRA. To do this, Solomon must collect the IAR’s CRD number, and first and last names. The IAR is responsible for communicating this information to Solomon when prompted. The IAR is also responsible for ensuring they receive documentation of courses completed and keeping track of the number of CE credits awarded for each course.

For more information about IAR Continuing Education, visit the NASAA FAQs page.

Disclaimer: NASAA does not endorse any particular provider of CE courses. The content of the course and any views expressed are our own and do not necessarily reflect the views of NASAA or any of its member jurisdictions.

Wisconsin Adopts Continuing Education Requirement for Investment Adviser Representatives

Wisconsin is the latest state to adopt the new NASAA continuing education requirement for investment adviser representatives. Continue reading

On January 24th, Wisconsin became the latest state to adopt NASAA’s new continuing education requirements for Investment Adviser Representatives.

Starting in 2022, every investment adviser representative (IAR) registered in a jurisdiction that has adopted the NASAA model rule will be subject to the CE requirement. The requirement applies to all registered IARs of both state-registered and federal-covered investment advisers.

Affected IARs will have to complete 12 credits of CE coursework each year. Six credits must be about product knowledge and industry practices, called Products and Practices CE. The other six credits must be about ethical and regulatory obligations, called Ethics and Professional Responsibility CE, and at least three of these must specifically be about ethics.

For Wisconsin and other states that adopt the CE requirement this year, the requirement will go into effect on January 1, 2023. For states that adopted the CE requirement last year (Maryland, Mississippi, and Vermont), it is currently in effect.

Solomon Exam Prep’s NASAA-approved IAR CE courses will be available soon. To stay informed, visit the Solomon website and join our Continuing Education email list.

Solomon Approved as Investment Adviser Representative CE Provider

As a leader in securities exam prep, Solomon Exam Prep will offer courses for IARs to complete the new NASAA IAR CE requirement. Continue reading

If you’re an Investment Adviser Representative (IAR) who will need to complete the new North American Securities Administrator Association (NASAA) IAR Continuing Education (CE) requirement starting in 2022, Solomon Exam Prep is an approved IAR CE provider! Solomon will be launching several of its planned CE courses soon.

What is the NASAA IAR CE requirement?

Starting in 2022, investment adviser representatives will be subject to a requirement that broker-dealer representatives have long been familiar with: Continuing Education. These courses are designed to keep a financial professional up to date on industry developments, current regulations, and ethical standards. Every IAR registered in a jurisdiction that adopts the NASAA model rule will be subject to its CE requirements. The mandatory CE program will apply to all registered IARs of both state-registered and federal-covered investment advisers. IARs will be required to meet the CE requirements of any state in which the IAR is registered. These requirements mandate:

- 12 credits of CE coursework per year. One credit is at least 50 minutes of instruction.
- Courses may be in person or online.
- 6 of the 12 credits must be about product knowledge and industry practices. NASAA calls this Products and Practices Continuing Education. IARs who are dually registered as broker-dealer agents are exempt from the Products and Practices CE if they complete their FINRA CE requirements.
- The other 6 credits must be about ethical and regulatory obligations. At least 3 of these must be specifically about ethics. NASAA calls this Ethics and Professional Responsibility Continuing Education.

So far, the following states have adopted the IAR CE requirement for 2022:

- Maryland
- Mississippi
- Vermont

Adoption of the IAR CE requirement is pending in Michigan, Nevada, and Wisconsin, but implementation may not occur until January 1, 2023. For the latest information on which states have adopted the requirement, see the NASAA website or the Solomon IAR CE webpage.

For more information about NASAA IAR Continuing Education, see these FAQs.

Solomon IAR CE Courses

Solomon Exam Prep will soon be launching its on-demand IAR CE courses, which will be available individually or as part of a full membership to the entire course library. IARs who are required to complete CE in 2022 will be able to take all the required 12 credits of CE coursework via the Solomon website.

Solomon has helped thousands of IARs pass their NASAA licensing exams with our innovative learning system, including the Series 63, Series 65, and Series 66. We are extending the same level of commitment to delivering quality IAR CE courses, and we look forward to supporting IARs as they navigate this new CE requirement.

Jeremy Solomon

Solomon president and co-founder

Be sure to get the latest updates about Solomon’s IAR CE courses by joining our email list! Sign up on the Solomon website here or click the button below.

Solo 401(k), SEP, & SIMPLE: Retirement Plans for Small Businesses

Be prepared for questions about SIMPLE, SEP, and solo 401(k) retirement account plans on the FINRA Series 6 and Series 7 exams. Continue reading

If you are studying for the FINRA Series 6 or Series 7 exam, you will need to learn about the different types of retirement plan accounts. A retirement account may be an individual plan that is managed by the participant or the participant’s agent, such as an investment firm or a trust bank. Or it may be employer-sponsored, meaning that it is organized and managed by the participant’s employer.

Private employers of any size and structure, from the largest C corporation to a sole proprietorship consisting of a single self-employed individual, may set up and use an employer-sponsored retirement plan. For small business owners, retirement plans offer significant tax advantages and can help attract employees. Since there are several types of retirement plans available for small businesses, it’s important to understand the features of each option. Three plans commonly chosen by small businesses are solo 401(k) plans, SEP plans, and SIMPLE plans.

Solo 401(k) Plans

A business owner can open a solo 401(k) if the business does not employ anyone else. The owner of the business creates a 401(k) plan much like any other employer. Then, as an employee, the owner opens a 401(k) account within that plan.

Both employer and employee contributions can be made in a solo 401(k). The maximum employee contribution is the same as for other 401(k)s. As of 2022, this limit is $20,500 per year, with a catch-up contribution of $6,500 for those aged 50 and above. As an employer, the maximum annual contribution is 25% of what the owner pays herself. The combined annual contribution (employee and employer) cannot exceed $61,000.

The business owner is allowed to employ her spouse and still make use of a solo 401(k) plan. The spouse can open their own 401(k) account using the business’s solo 401(k) plan. A solo 401(k) can be created whether the business is set up as a corporation, LLC, or sole proprietorship. Self-employed people who haven’t set up a business can also create a solo 401(k), although their contribution limits are calculated differently.

Unlike most employer-sponsored retirement plans, solo 401(k)s do not need to comply with ERISA (the Employee Retirement Income Security Act). This is a federal law that requires employers to give employees fair access to the employer’s retirement plan. These concerns do not apply when the business has no other employees.

SEP

Simplified Employee Pension (SEP) plans are IRA-based retirement plans for any size business but are usually favored by small businesses. Under this type of plan, the business owner can make pre-tax contributions into IRA accounts set up for eligible employees and also for herself if the owner is self-employed.

The plan allows employers to skip contributions in years when business is bad, but if the owner makes a contribution for herself, she must also make contributions for her employees. When contributions are made, they must be made for all participants who actually performed work during the year for which the contributions are made, including those over 72 years of age (the latter feature is unique to the SEP plan). Contributions for all participants generally must be uniform, for example the same percentage of hourly wage.

The business owner can make contributions of up to 25% of an employee’s salary, or an annual maximum of $61,000, whichever is less. Only the employer, and not the employee, makes contributions to the SEP IRA, but an employee is always 100% vested in his SEP IRA. Generally, the employer can take an income tax deduction for contributions made to each employee’s SEP. SEP contributions are not included on the employee’s W-2 statement for tax purposes. Rules for withdrawal of funds are generally the same as for any other IRA, meaning that withdrawals are subject to income taxes, and early withdrawals are usually subject to a penalty.

SIMPLE

Savings Incentive Match Plan for Employees (SIMPLE) plans are retirement plans for businesses having no more than 100 employees. With a SIMPLE IRA or SIMPLE 401(k), the employee may make pre-tax contributions to the plan. The contribution is expressed as a percentage of the employee’s compensation and is limited to $14,000 a year ($17,000 for employees aged 50 and over). The employer is required to either match these contributions up to 1% to 3% of the employee’s compensation or to contribute 2% whether the employee makes a contribution or not. The employer chooses which type of contribution (and if matching, the maximum percentage it will match). This choice applies to all employees. So an employer who chooses matching contributions is not obligated to contribute 2% to an employee who chooses not to contribute.

Any employee who previously earned at least $5,000 during any two years and is reasonably expected to receive at least $5,000 during the current calendar year is eligible to participate in this plan. Unlike the SEP plan, however, premature SIMPLE IRA distributions (withdrawals of account funds) will incur a 25% penalty in the first two years the account exists if made before age 59 1/2.

While the SEP plan is discretionary, in that the employer can decide when to fund the plan, funding the SIMPLE IRA plan is mandatory, no matter what kind of year the business had. A SIMPLE 401(k) functions similarly to a SIMPLE IRA. Both have the same contribution limits and are 100% vested from the beginning.

Good to know:

SEP and SIMPLE IRAs have characteristics in common with traditional IRAs. For example, contributions are generally made with pre-tax dollars, must be earned income, and must only be in cash. Taxes on contributions and earnings are deferred until withdrawal, as long as withdrawals occur after the age of 59 1/2. Required minimum distributions (RMDs) must begin the year the participant turns age 72, although the participant may choose to delay the first payment until April 1 of the following year. After that, RMDs must be taken by December 31 each year. Funds can be distributed as a lump sum or in periodic payments. If the account owner fails to withdraw an RMD or the full amount of the RMD before the deadline, the amount not withdrawn is taxed at 50%.

Anyone who plans to become a registered representative by passing the Series 6 or Series 7 exam and assist customers with retirement plans must understand the complexity of retirement planning. The Solomon Exam Prep Series 6 Study Guide and Series 7 Study Guide both cover retirement plan accounts so that you can be prepared for questions about this topic on exam day. Visit the Solomon website to explore study materials for 21 different securities exams, including the Series 6 and 7.

Pepperdine University Partners with Solomon on SIE Prep Course

Solomon Exam Prep’s Securities Industry Essentials (SIE) Exam prep materials will be used by students at Pepperdine University this Spring 2022 term. Continue reading

Solomon Exam Prep is thrilled to announce that Pepperdine University in Malibu, California, will be using the Solomon SIE curriculum for a course in the spring 2022 term. This marks the second time Pepperdine has used Solomon SIE materials in one of their courses in the Graziadio Business School, which offers full-time, part-time, and executive MBA programs, as well as doctorate, master’s, bachelor’s, joint degrees, and professional development certificate courses.

The seven-week, in-person class, Contemporary Issues in Business and Management, will be taught by Professor Chris Manfrè, MBA, PhD, and will give students the chance to explore current topics in business and management. Students will be using the Solomon SIE Total Package as their main course material, which includes the digital Study Guide, Exam Simulator, Audiobook, Video Lecture, and Flashcards. The course will help prepare students to take the FINRA Securities Industry Essentials (SIE) Exam.

Bring the SIE To Your Campus

Solomon Exam Prep can tailor its SIE curriculum to fit any course, including credit and non-credit courses, as part of a current course such as Finance or Capital Markets, or as a self-study program. The Solomon platform works equally well for in-person, hybrid, and online courses. And no matter what kind of course it is, instructors receive access to the Instructor Portal, class slides, quizzes and exams, a custom study schedule, and QwizBang, Solomon’s interactive game platform.

Solomon Exam Prep partners with dozens of colleges and universities to bring the Solomon SIE exam prep program to students across the country. Join institutions such as Pepperdine University, the University of North Carolina at Pembroke, University of Delaware, Adelphi University, University of Nebraska-Omaha, Seton Hall University, Ohio Dominican University, Georgetown University, Widener University, and University of Dallas in partnering with Solomon.

To learn more about the ways colleges and universities can partner with Solomon, visit the website or contact Beth Hamilton, Higher Education Development Manager, at beth@solomonexamprep.com or 503-601-0212.

Solomon Exam Prep has helped tens of thousands pass their FINRA, NASAA, MSRB, and NFA licensing exams including the SIE, Series 3, 6, 7, 14, 22, 24, 26, 27, 28, 50, 51, 52, 53, 54, 63, 65, 66, 79, 82, and 99.

Pass Probability™ Now Available for the Series 24

If you’re studying for the FINRA Series 24 exam, take the guesswork out of knowing when you’re ready to take your exam with Solomon’s Pass Probability feature. Continue reading

Preparing for a challenging securities licensing exam like the FINRA Series 24, also known as the General Principal Qualification Exam, can be a stressful experience. In particular, determining when you’ve studied enough and are ready to sit for your exam isn’t always easy. How do you know if those weeks of preparation have paid off?

Pass Probability

With the Solomon Exam Prep Pass Probability™ feature, now available in the Solomon Series 24 Exam Simulator, you don’t have to guess whether you’re truly prepared to sit for the Series 24 exam. Pass Probability™ is Solomon Exam Prep’s innovative AI technology that measures your readiness to pass a securities exam. Pass Probability is based on a mathematical model involving the performance of thousands of Solomon students. A correlation analysis has shown that Pass Probability is highly effective at predicting a student’s likelihood of passing.

Here’s how it works: Once you take five full practice exams in the Solomon Series 24 Exam Simulator, the Pass Probability™ tool is activated. Based on your scores on these five practice exams, the tool calculates the probability that you will pass the real test, with a percentage out of 100. Solomon recommends aiming for a Pass Probability of 75% (80% is even better) before taking your exam.

Remediation Reports

But if your Pass Probability is below 75%, Solomon can help! Connected to the Pass Probability tool, the Solomon Remediation Report provides an additional level of customized study support. If your Pass Probability is lower than 75%, you will receive an individual report with detailed suggestions on how to focus your study efforts BEFORE taking your exam. The Remediation Report is sent straight to your email and includes the following:

- Summary of current study progress
- Personalized recommendations on areas for growth
- Study tips for the homestretch
- Reminders about student support elements

Solomon Pass Probability and Remediation Reports are also available for these exams: SIE, Series 6, Series 7, Series 63, Series 65, Series 66, Series 79, and Series 82.

Used Solomon materials for both the SIE and S7. So grateful to these materials for helping me achieve a passing score on my first attempts of both exams. The study guide and videos were thorough, comprehensive and easy to follow. I found the pie charts extremely useful in helping me identify areas where I needed more study, and was grateful for the Pass Probability feature in giving me a bit of extra confidence before sitting for the exam. I would absolutely recommend all of their materials to anyone taking this journey.
Andrew Nerys, Square Inc., Portland, OR

If you have a current subscription to the Solomon Series 24 Exam Simulator, Pass Probability and Remediation Reporting have been added to your product free of charge. These tools are in addition to the other helpful Exam Simulator features:

- Huge Question Database: Over 3,500 original Series 24 practice questions with robust rationales that clearly explain why a specific answer is correct
- Free Updates: Questions updated continually to keep up with regulatory and industry changes
- Strength Breakdowns: Refine your practice with detailed exam results and self-assessment tools that help you identify areas that require more study
- Interactive Review: Makes it easy to review the questions you’ve gotten wrong on quizzes and exams
- Unlimited Quizzes & Exams:
  ◦ 20-question quizzes based on the FINRA exam sections
  ◦ 160-question untimed practice exams with immediate answer feedback
  ◦ 160-question timed practice exams

New to Solomon Exam Prep? Learn more about the Solomon Series 24 Exam Simulator and other study materials available for the Series 24 by visiting the Solomon website here. And click here or the button below to try a free Series 24 sample quiz from the Solomon Exam Simulator!

What Does “Tender” Mean on Securities Exams?

For a number of securities exams, you should understand the term “tender.” Solomon explains what the term means and how it’s used in the securities industry. Continue reading

When studying for a securities exam such as the FINRA Securities Industry Essentials (SIE) exam and the Series 7, Series 14, Series 24, Series 79, or the MSRB Series 50, Series 52, Series 53, or Series 54, it’s likely you will encounter the word “tender.” This bit of terminology may be confusing at first. But learning the ways “tender” is commonly used in the securities industry will prevent you from getting tripped up when you see it on an exam.

You may have heard this word in connection with stock buybacks. When a company offers to buy its shares back from stockholders, the company is said to be conducting a tender offer. The stockholders who take the company up on the offer are said to be tendering their shares. A company may also make a tender offer to a different company’s shareholders, for example if it wants to acquire the other company.

The word “tender” comes from the field of law. To tender is to make a binding offer to enter into an agreement. (It also has a second meaning of presenting payment, which is why your dollar bill has the phrase “legal tender” on it.) So when you tender a security you own, you are offering to sell it on terms that have been spelled out between you and the other party. In the case of a tender offer, the company must specify these terms when it makes the offer and shareholders must take them or leave them. In many cases, the U.S. Securities and Exchange Commission (SEC) requires that these terms include a window of time during which shareholders who tendered their shares may change their minds. In that case, the “binding offer” is not binding right away.

Another securities-related use of “tender” is when a security gives its owner the right to sell it back to the issuer. Exercising this right is sometimes called tendering the security. For example, a municipal bond might have a tender option that gives the bondholder the right to sell it back to the municipality at a certain time for a certain price. Additionally, some variable-rate municipal securities come with a mandatory tender that is triggered when the rate is adjusted. When this happens, the bondholder must choose between tendering the bond or accepting the new rate.

So if you see the word “tender” on a securities exam, it means that the owner of a security is offering to sell it under specific terms and conditions, and the owner’s ability to back out of the offer may be limited.

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Francis Marion University Students Studying for the SIE Exam with Solomon

Solomon Exam Prep’s newest partnership will bring its Securities Industry Essentials (SIE) exam curriculum to a self-study cohort. Continue reading

Solomon Exam Prep is pleased to announce that students at Francis Marion University in Florence, South Carolina, will shortly begin studying for the Securities Industry Essentials (SIE) exam. Instructor Jan Serrano, PhD., Associate Professor of Finance, will lead the group of students in a self-study course using Solomon’s SIE Total Study Package, providing them with the widest variety of study tools to help them pass the SIE.

Bring the SIE To Your Campus

Interested in how you could incorporate Solomon Exam Prep’s study materials into a course at your college or university? Solomon’s flexible SIE curriculum can be tailored to meet the needs of a variety of classes. Students receive Solomon’s industry-leading online study materials at a discounted educational rate, and instructors benefit from high-touch support and access to the Instructor Portal with its innovative classroom tools and reporting features. And Solomon’s SIE curriculum is perfect for both in-person and online courses.

Solomon Exam Prep partners with dozens of colleges and universities to bring the Solomon SIE exam prep program to students across the country. Join institutions such as the University of Nebraska-Omaha, University of Delaware, Adelphi University, Seton Hall University, Ohio Dominican University, Georgetown University, Widener University, and University of Dallas in partnering with Solomon.

To learn more about the ways colleges and universities can partner with Solomon, visit the website or contact Beth Hamilton, Higher Education Development Manager, at beth@solomonexamprep.com or 503-601-0212.

Solomon Poll: Inflation Expectations for 2022

What are inflation and inflation expectations, and why are they important? Learn what these terms mean and the results of the latest Solomon poll. Continue reading

Can you predict what the economic future of the U.S. will be next month? How about next year? If you’re not sure, Solomon Exam Prep suggests you look at leading indicators, which are economic measures that have been found to anticipate a change in the economy. They are also tested subjects on securities licensing exams such as the FINRA Securities Industry Essentials (SIE) exam and the NASAA Investment Adviser (Series 65) exam.

One important leading indicator is inflation. So, we asked Solomon LinkedIn followers to predict whether the rate of inflation in 2022 will increase, decrease, or stay the same. According to the poll, a whopping 81% of respondents believe that inflation will increase in 2022. Ten percent predict that inflation will stay the same, and nine percent think it will decrease.

For securities licensing exams, leading indicators are important to understand because they are believed to have predictive power, and therefore, allow economists to see what the economic future may hold. That is why Solomon Exam Prep study guides for the Securities Industry Essentials (SIE), Series 7, Series 65, and Series 66 all discuss inflation. So, what exactly is inflation and why does it occur?

What is inflation and why does it happen?

Inflation means an increase in the prices of goods and services and a decline in the purchasing power of a currency. It can be understood as a part of business cycles, which are fluctuations in the economy. A business cycle has four phases. The first phase, expansion, is characterized by an increase in economic activity and above-average economic growth. In this phase, the production of goods rises and unemployment falls. Lenders make credit more available because they believe businesses and people will be able to repay their loans. Available credit means lower interest rates, which fuels expansion, resulting in more jobs.

The expansion phase feels good because jobs are plentiful, and wages rise. But a risk of the expansion phase is the possibility of inflation because increasing wages and available credit tend to boost prices. Inflation can result when demand for goods and services outstrips their supply. This usually occurs near the end of an expansionary phase, when too much money is chasing too few goods. Inflation can occur because of:

- High consumer confidence in the economy
- An economy that has reached its production potential
- Excess money in the economy
- Increases in wages and other production costs, such as a rise in commodity prices

What does inflation mean for investors?

With rising prices come rising interest rates. For example, if the cost of living is increasing at 5%, as measured by the Consumer Price Index (CPI), investors will be unwilling to purchase a bond paying 4% and lose purchasing power. Lenders will need to raise interest rates to keep up with inflation.

In an inflationary environment, investors may be less inclined to make long-term investments. The possibility that a long-term bond or other long-term investment will not keep up with inflation may drive investors to short-term and variable-rate bonds. Unfortunately, to grow, many businesses, especially capital-intensive companies such as oil and gas refineries, airlines, and telecommunications companies need to borrow for the long-term. As a result, an inflationary environment can reduce business investment and cause an economic downturn.

What are inflation expectations?

To return to the Solomon LinkedIn poll – does it matter what people think will happen with inflation in the future? The short answer is yes, and there’s even a term for this: inflation expectations. Inflation expectations refer to the rate at which people and businesses expect prices to rise in the future. Inflation expectations are important because they can actually affect the real rate of inflation. For example, if everyone expects prices to increase by two percent over the next year, then businesses will likely raise their prices by two percent or more, and workers will want comparable salary increases.

If the Solomon LinkedIn poll results are any indication, inflation expectations for the next year are that prices will increase. Do you agree that 2022 will see a rise in the rate of inflation? Comment below to share your thoughts on the topic.

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