Tag: Securities Licensing Exams

How to Pass the FINRA Series 14 and Become a FINRA-registered Compliance Officer

Looking to become a compliance officer for a broker-dealer? Read Solomon Exam Prep’s guide to effective preparation for the FINRA Series 14 exam. Continue reading

What does the FINRA Series 14 allow me to do?

The FINRA Series 14, also known as the Compliance Officer Exam, is a principal-level exam that qualifies you to serve as a compliance officer for a broker-dealer, including being designated as the Chief Compliance Officer (CCO) of a broker-dealer in its SEC registration. The Series 14 was designed to make sure that individuals who have day-to-day compliance responsibilities or supervise others engaged in compliance activities have the knowledge necessary to carry out their job responsibilities.

There are two ways to achieve the Compliance Officer qualification: pass the SIE, Series 7, and Series 24 exams, or pass just the Series 14 exam. In other words, by taking the Series 14, you get to take one exam instead of three. For this reason, the Series 14 is broader, deeper, and more difficult than most FINRA exams. Passing the Series 14 requires knowledge of compliance issues related to a broad range of broker-dealer activities, from the mechanics of trading to the details of the underwriting process to the publication of research reports.

You must be associated with a FINRA member firm in order to take the Series 14.

About the Exam

The Series 14 exam consists of 110 multiple-choice questions covering the nine sections of the FINRA Series 14 exam outline. FINRA updates its exam questions regularly to reflect the most current rules and regulations.

Note: Scores are rounded down to the lowest whole number (e.g. 69.9% would be a final score of 69%–not a passing score for the Series 14 exam).

Topics Covered on the Exam

FINRA divides the Series 14 exam into nine areas. These areas are organized by the types of knowledge that a compliance officer will need to know to complete various job functions.

The Series 14 exam covers many topics including the following:

    • Components of a satisfactory supervisory system as defined by FINRA
    • Rules and mechanics of the securities markets
    • Margin requirements
    • Sales practices
    • Types of brokerage accounts
    • Separation of research and investment banking
    • Net capital requirements
    • Registration requirements for firms and associated persons
    • Business continuity plans
    • Customer identification and anti–money laundering compliance

Question Types on the Series 14

The Series 14 exam consists of multiple-choice questions, each with four options. You will see these question structures:

Closed Stem Format:

This item type asks a question and gives four possible answers from which to choose.

Under Rule 144, what is the holding period for stock purchased in the open market by a control person?

    1. Two years
    2. One year
    3. Six months
    4. No holding period
Incomplete Sentence Format:

This kind of question has an incomplete sentence followed by four options that present possible conclusions.

According to NYSE rules, a block of stock is defined as:

    1. 10,000 shares, or a quantity with a market value of $150,000 or more, whichever is less.
    2. 10,000 shares, or a quantity with a market value of $200,000 or more, whichever is less.
    3. 20,000 shares, or a quantity with a market value of $200,000 or more, whichever is less.
    4. 20,000 shares, or a quantity with a market value of $200,000 or more, whichever is more.
“EXCEPT Format”

This type requires you to recognize the one choice that is an exception among the four answer choices presented.

All of the following require the successful completion of one or more exams except a:

    1. specialist
    2. trader
    3. securities lending representative
    4. two-dollar broker
Complex Multiple-Choice (“Roman Numeral”) Format:

For this question type, you see a question followed by two or more statements identified by Roman numerals. The four answer choices represent combinations of these statements. You must select the combination that best answers the question.

Which two of the following employees of a member organization must be registered and qualified under NYSE Rule 345?

    1. An employee with authority to bind the firm to a contract involving securities activities
    2. An employee who only trades for the firm’s account and does not transact business with the public
    3. An employee with duties and responsibilities similar to those of a registered representative
    4. A supervisor of an employee who solicits business for the firm from another member firm
    1. I and III
    2. I and IV
    3. II and III
    4. II and IV

This format is also used in items that ask you to rank a set of statements from high to low or to place a series of events in the proper sequence.

In which order, from first to last, are the following actions performed during the underwriting of an issue of corporate securities?

    1. The holding of a due diligence meeting
    2. Investigation and analysis of the issuer
    3. The filing of a registration statement
    4. Distribution of the red herring to customers giving indications of interest
    1. I, II, III, IV
    2. II, III, I, IV
    3. III, I, II, IV
    4. IV, II, III, I

Study Strategies for the Series 14

    • Use all the resources. The Resources folder in your Solomon student account has helpful information, including a detailed study schedule that you can print out – or use the online study schedule and check off tasks as you complete them.
    • Read and understand. It’s simple: read the Solomon Study Guide, carefully. The Series 14 is a knowledge test, not an IQ test. Many students read the Study Guide two or three times before taking the exam.
    • Take handwritten notes. As you read the Solomon Series 14 Study Guide, take handwritten notes and review your notes every day for 10 to 15 minutes. Studies show that the act of taking handwritten notes in your own words and then reviewing these notes strengthens learning and memory.
    • Make flashcards. Making your own flashcards is another powerful and proven method to reinforce memory and strengthen learning.
    • Research. Research anything you do not understand. Curiosity = learning. Students who take responsibility for their own learning by researching anything they do not understand get a deeper understanding of the subject matter and are much more likely to pass.
    • Answer practice questions in the Solomon Exam Simulator. When you’re done with a chapter in the Study Guide, take 4 – 6 chapter quizzes in the Solomon Exam Simulator. Use these quizzes to give yourself practice and to find out what you need to study more. Make sure you read and understand the question rationales. When you’re finished reading the entire Study Guide, review your handwritten notes once more. Then, and only then, start taking full practice exams in the Exam Simulator. Aim to pass at least six full practice exams and try to get your average score to at least an 80; when you reach that point, you are probably ready to sit for the Series 14 exam.
    • Take regular breaks. Studies show that if you are studying for an exam, taking regular walks in a park or natural setting significantly improves scores. Walks in urban areas or among people did not improve test scores.
    • Get enough sleep during the period when you are studying. Sleep consolidates learning into memory, studies show. Be good to yourself while you are studying for the Series 14: exercise, eat well, and avoid activities that will hurt your ability to get a good night’s sleep.

You can pass the FINRA Series 14! It just takes work and determination. Solomon Exam Prep is here to support you on your journey to becoming a FINRA-registered Compliance Officer.

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Answering Suitability Questions on the FINRA Series 7

Suitability questions may appear daunting. But they don’t have to be – read the Solomon guide to answering suitability questions with ease. Continue reading

If you’re taking the FINRA Series 7 exam, you very possibly dread the term suitability. We understand that suitability questions may appear daunting. But to enhance your chances of passing the exam, you should have a good understanding of the concept and how it applies to certain test questions.

Suitability questions can be difficult because they often contain more than one answer choice that seems plausible. In short, they are more open-ended than other questions that appear on the exam. While this can make these questions tough, keep in mind that in each suitability question has one BEST answer given the information provided. This blog will help you select that that best answer choice.

First, what is a suitability question? The most basic type of suitability question presents a hypothetical investor and his profile and asks you which investment or investments is most suitable for him. Other suitability questions are about specific products. For instance, a question might ask you to choose the bond that would be most suitable for a high-income earner – usually a municipal bond. Finally, other types of suitability questions may provide an information about an investor and her profile and you will be asked which investments should be removed and/or added to her portfolio, or which proposed asset allocation is best.

So, what’s the best strategy for answering these questions?

1. Learn and memorize the characteristics of the investment products.

The most basic requirement for properly approaching any of these questions is to have a good understanding of the investment products mentioned in the question. Think about it this way: if you don’t know the characteristics a product, it’s difficult to know who should and shouldn’t buy it. For instance, if you don’t know the characteristics of a growth fund or a municipal bond it will be hard to assess which investors should own these products or avoid them in favor of other products. This means learning and memorizing the characteristics of the major investment products, such as stocks, bonds, funds, and options, is the first step to mastering suitability.

2. Categorize the investment goals of the investor in the question.

Assuming that you understand the products mentioned in a question, let’s look at what else you should consider when answering a suitability question. First, when reading a suitability question, focus on the financial goals attributed to the hypothetical investor presented in the question.

There are four major investing goals and strategies that you should keep in mind when doing this. First, there are capital preservation investors. These investors are interested in obtaining a minimum level of return while not putting their principal at any significant risk. Then there are the income investors. These want to receive a steady stream of payments in hopes of supplementing their income. Third, there are capital growth investors. These are long-term investors whose primary hope is seeing the value of their investments rise over time. Finally, there are the speculative investors. These investors are willing to take on more risk in the hopes of earning higher gains in a shorter amount of time. Placing an investor in one of these categories, or a blend of two of these categories, will help you figure out which investments are most suitable for the investor.

3. Analyze the profile of the Investor, looking for risk tolerance, time horizon and tax bracket.
Risk Tolerance:

Look for the investor’s risk tolerance. If an investor is not willing to take on much risk, only the most conservative investments are suitable for him. In contrast, an investor with a high risk tolerance is willing to own more volatile types of investments. Typically, conservative risk tolerance correlates with capital preservation investors, and sometimes income investors, while high risk tolerance correlates with speculative investors and many capital growth investors. Examples of conservative investments include U.S. Treasury securities, money market funds, and bank CDs. Examples of high-risk investments include penny stocks, options, junk bonds, and possibly growth stocks.

Time Horizon:

An investor’s time horizon is another factor you must consider. Is the investor hoping for long-term growth, or is he going to need to cash out of his investments in a relatively short amount of time? Sometimes a question will not present you with this exact information but instead will give an investor’s age. Questions that mention an investor who is in his 20s or 30s are indicating someone with a long time horizon. In contrast, questions that describe an investor who only has a few years until retirement are usually describing someone with a shorter time horizon. Scenarios that describe a couple who wants to buy a house or pay for college in the next year, will also have a short time horizon, and therefore, will require liquid investments.

So which investments are best for long- and short-term investors? An investor with a long time horizon is able to invest in products that are expected to grow over time, such as growth stocks, equity mutual funds and ETFs, or annuities. He is also more likely to take on riskier investments since he has more time to make up for any losses. On the other hand, a short-term investor should invest in less volatile securities or debt investments that mature in the near term, such as U.S. Treasuries and money market funds. An investor with a short time horizon is also less likely to take on a high level of risk than a long-term investor because a short-term investor does not have as much time to make up any losses.

Tax Bracket:

A final factor to consider when determining suitability is income level or tax bracket. An investor who makes a lot of money will typically have a higher federal income tax rate. This means the money he receives from his investments will be more heavily taxed than the money someone in a lower tax bracket. Additionally, for a high income investor, capital gains are taxed at a lower rate than interest income. Oftentimes, it is best to recommend investments with fewer tax implications for a high-income investor. Municipal bonds, whose interest payments are usually tax-free at the federal level and often also tax-free at the state level, are typically suitable investments for high-income investors. In contrast, because the interest rates for municipal bonds are often lower than the interest rates for corporate bonds, investors in lower tax brackets may be better off purchasing corporate bonds than municipal bonds. Additionally, stocks are often suitable for investors with higher tax rates because their gains are not taxed until the stocks are actually sold. At the same time, investments that pay regular interest, but do not come with tax advantages may not be suitable for high-income investors because they will have to pay taxes on this interest.

So now that you know what to look for in suitability-type questions, let’s look at a couple of them:  

QUESTION ONE:

Mary is an investor in her thirties. She makes $50,000 a year and is hoping to find an investment that will provide capital appreciation. At the same time, she would not mind supplementing her income by receiving regular payments from her investment. Which of the following would be most suitable for her?

    1. A municipal bond fund
    2. A growth and income fund
    3. A small-cap stock fund
    4. Penny stocks

This question tells you Mary’s investment goals and objectives. She’s looking for capital growth and secondarily income, so she’s a blend between a capital growth and income investor. Additionally, since she’s in her thirties, you can assume that she has a relatively long time horizon. Finally, her low income means she is not in a high tax bracket.

You know that Mary needs an investment option that provides the potential for both capital growth and income payments. Both penny stocks and small-cap stocks carry the potential for capital growth; however, neither of them typically offers income payments. That is because neither penny stocks nor small-cap stocks pay meaningful dividends. This eliminates choices C and D. A municipal bond fund would provide income because municipal bonds make semi-annual interest payments. However, outside of high-yield bonds, bonds in general don’t offer much in the way of capital growth. Also, since interest from municipal bonds is generally not taxed at the federal level, municipal bond interest payments are lower than corporate debt securities and thus are not the best debt investment option for an investor who is not in a high tax bracket. Given all of this information, you can eliminate choice A as well. Now let’s look at choice B. A growth and income fund contains stocks with `capital growth potential along with stocks that provide regular dividend payments. Also, growth stocks are also good for investors like Mary who have long time horizons. Looks like you’ve found the correct answer: Choice B makes the most sense. 

 

QUESTION TWO:

Alisha is 26 and has just received an MBA. She’s starting on a career as a sales manager at a large company and has a bright future. She has $15,000 to invest with your firm, and she tells you that she would like to see that principal appreciate as much as possible over the next two to three decades. She also says she has no problem taking on a high level of risk to help make that happen. Which of the following asset allocations would be most suitable for Alisha?

    1. 20% income fund, 20% municipal bond fund, 20% fixed annuities, 20% dividend-paying stocks, 10% non-traditional ETFs, 10% cash
    2. 20% bond mutual fund, 20% agency bonds, 10% money market funds, 15% bank CDs, 15% dividend-paying stocks, 10%, 10% cash
    3. 30% large-cap stocks, 20% equity index mutual fund, 20% U.S. Treasuries, 20% AAA-rated corporate bond funds, 10% FDIC-insured bank CDs
    4. 20% small-cap stocks, 20% medium-cap stocks, 20% growth fund, 15% high-yield bond funds, 15% balanced fund, 10% interval fund

Again, you’re presented with the investor’s investment goals and objectives in the question prompt. In stating that Alisha hopes to see her principal appreciate as much as possible over a long period of time, the question is telling you that she is a capital growth investor. It also is implying that she has a long time horizon. Additionally, it states that she is willing to take on a high level of risk in meeting her investing goals, which means she’s an investor with a high risk tolerance.

Given each of these factors, you need to look for the portfolio that makes the most sense for her. That portfolio should contain more equity investments than debt investments. That is because in general equities provide better capital growth potential than bonds. Additionally, you should look for investments that have higher growth potential and which carry more than a moderate level of risk. Remember that higher risk often equals higher potential reward, and Alisha is willing to take this gamble.

So let’s look at each of the possible answer choices.

Alisha isn’t really interested in earning income as part of her strategy and wants the potential for large gains. That means choice A, which is heavy on income and low-return investments, should be discarded. The same is true of choice B. Choice C is a bit tougher to eliminate. That’s because this hypothetical portfolio does include some growth-type investments, such as large-cap stocks and equity index mutual funds. However, these are both equity investments that are known to provide a more moderate return potential than Alisha is seeking. Additionally, choice C contains a relatively high percentage of fixed and low-return investments, and thus it doesn’t look like a great answer choice. That leaves choice D. The hypothetical portfolio presented in that answer choice is heavy on aggressive growth-type stocks and funds that carry a high level of risk, such as small-cap stocks, mid-cap socks, and growth funds. Additionally, a high-yield bond fund is a type of debt security that comes with capital growth potential. And it includes 10% allocation to an interval fund, a type of fund that invests in non-publicly traded securities that are illiquid and may be less correlated to the other publicly trade securities in this portfolio. Thus, choice D is the best choice and the correct answer. 

Suitability questions are definitely not easy. But if you consider all of the relevant aspects presented in the answer choices and have a solid understanding of different types of investments, they are something you can master. And master them you must if you want to pass the Series 7 or the Series 6 exam.

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Securities Exam Score Survey Results Are In

Do you think FINRA should provide exam scores to those who pass their qualification exams? Keep reading to learn the results of the Solomon survey. Continue reading

Solomon Exam Prep loves to hear customers’ opinions on all things securities exam-related. We recently conducted a LinkedIn poll about this question: 

Do you think FINRA should provide exam scores to those who pass their qualification exams? 

110 people voted: 73% answered “yes” and 27% answered “no.”  

Before October 2018, everyone who took a securities exam received a score. Since October 2018, FINRA only provides a score to those who fail. But the results of the Solomon survey are clear: ignorance is not bliss. A majority of exam respondents would like to know their exam scores upon passing. 

For more polls, news, and securities exam updates, follow the Solomon LinkedIn page.

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Solomon Pass Probability™ Now Available for the FINRA Series 82

Everyone would like to feel confident when they take their securities exam, but how do you know if you’re ready for test day? Solomon Exam Prep can help – with Pass Probability™. Continue reading

Everyone would like to feel confident when they take their securities exam, but how do you know if you’re ready for test day? Solomon Exam Prep can help! With Pass Probability™, now available for the FINRA Series 82 exam, Solomon takes the guesswork out of deciding when to sit for your exam.

Pass Probability™ is Solomon Exam Prep’s innovative technology that measures your readiness to pass your securities exam. Once you take five practice exams in the Solomon Exam Simulator, the Pass Probability™ tool calculates the probability that you will pass your test, with a percentage out of 100.

"A securities licensing exam is hard work and high stakes. Your enemy is uncertainty. Solomon's industry-leading Pass Probability™ feature is based on the results of thousands of Solomon securities students and uses a proprietary algorithm to reduce uncertainty. So you can enter the exam room with confidence."
Jeremy Solomon
Co-founder and President of Solomon Exam Prep

Remediation Reporting

But what should you do if you take five practice exams, and the Solomon algorithm determines that you are not ready to take your exam? This is where Solomon’s brand-new feature, the Remediation Report, comes in.

The Remediation Report is an individualized report outlining how to focus your efforts BEFORE taking your exam. It provides an added level of customized study support – sent right to your email.

The Remediation Report gives you:
  • Summary of current study progress 
  • Personalized recommendations on areas for growth 
  • Study tips for the homestretch 
  • Reminders about student support elements 

In addition to the Series 82, Solomon Pass Probability™ and Remediation Reports are currently available for the following exams: SIE, Series 6, Series 7, Series 63, Series 65, Series 66, and Series 79. 

Solomon Releases New Edition of Series 14 Study Guide and Exam Simulator 

The Series 14 is one of the more difficult FINRA exams, so it’s a good idea to be well-prepared going into test day – Solomon Exam Prep can help! Continue reading

Do you need to know about compliance issues related to a wide range of broker-dealer activities? Do you plan to supervise others engaged in compliance activities? If you said “yes” to these questions, then you probably work for a broker-dealer and need to take the FINRA Series 14 exam. The Series 14 is one of the more difficult FINRA exams, so it’s a good idea to be well-prepared going into test day – Solomon Exam Prep can help! 

Solomon is proud to announce the release of the 2nd edition of the Solomon Exam Prep Guide to the Series 14 Compliance Officer Examination. This comprehensive Solomon Study Guide is written in clear English and packed with practice questions, exercises, and visual aids for better understanding. The 2nd edition includes key updates and improvements designed to help Series 14 students prepare for their exam more effectively so that they can pass the first time.   

The Solomon Series 14 Study Guide, 2nd edition, includes: 
  • A chapter dedicated to research reports and research analysts, with new practice questions 
  • Expanded and revised discussion of Regulation SHO vs. OTC close-out rules 
  • Streamlined and simplified explanation of margin accounts 
  • Expanded and revised discussion of Regulation M stabilizing activities 
  • New material about tax rules for gifting shares to charity 
  • New material about stock splits for restricted stock 
  • New material about SPACs 
  • New material about categories of issuers, such as WKSIs and EGCs 
  • The SEC’s March rules update regarding Regulation D and Regulation A offerings 

Solomon has also updated the Series 14 Online Exam Simulator to reflect the changes made to the Study Guide. The new Series 14 Exam Simulator contains over 2,400 questions written by Solomon content experts. This massive question bank means that you will encounter new questions with each practice quiz or exam you take. Plus, each question provides a robust explanation so that you learn even more as you test yourself.

I would like to say a big thank you to Solomon for helping me pass my Series 14 exam. I took this exam the first time and missed passing by few marks. I was really sad and discouraged so reached out to Jeremy Solomon and he really took the time to talk to me and provide his guidance and advice. He also provided me with additional resources immediately to help with my second attempt. I recently passed this exam. Their study material is easy to understand and the Online Exam Simulator also has a lot of questions chapter-wise which were very helpful. Their customer service has been amazing and very responsive. Thank you Solomon. I will definitely recommend Solomon for anyone planning to take this exam.

Rachna Shah

CBRE. Beverly Hills, CA 

Solomon Exam Prep is committed to providing industry-leading securities licensing materials, which are continuously kept up-to date. If you are an existing Solomon Series 14 customer, the new 2nd edition will be automatically updated in your account, free of charge. 

To view samples of the Solomon Series 14 Study Guide and Exam Simulator, visit the Solomon website here. 

Solomon Exam Prep Offers Powerful New AI Feature: Remediation Reporting

Learn about the Solomon Remediation Report, a new analytical feature designed to help students pass their securities licensing exams the first time. Continue reading

Solomon Exam Prep is delighted to announce an advanced analytical feature called a Remediation Report. The Solomon system analyzes a student’s five most recent practice exams and determines whether a student is ready to take his or her exam. If Solomon AI determines that a student is not ready to sit for their exam, then it creates an individual report with personalized guidance on how to remediate and prepare to pass. This custom Remediation Report is sent to the Solomon student’s email inbox.

The Solomon Remediation Report is connected to the Solomon Pass Probability tool, the industry-leading measure of a security exam prep student’s readiness to pass an exam. Solomon Pass Probability is based on thousands of student data points. Once a Solomon student has taken at least five practice exams, the Solomon Pass Probability feature is activated, and the Pass Probability metric is available in the student’s dashboard. The Solomon Remediation Report provides an additional level of customized study support by helping students focus their efforts and remediate before they sit for their exam.

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

To learn about all the features of the Solomon Exam Prep learning system, watch the video overview.

Curious about the Solomon Learning System? Watch the video overview!

Watch the latest Solomon Exam Prep video for a complete look at the Solomon learning system and what it offers students and firms. Continue reading

Solomon Exam Prep has helped thousands of financial professionals pass their FINRA, NASAA, MSRB, and NFA licensing exams. Watch the video for a complete look at the Solomon learning system and what it offers students and firms.

To explore Solomon Exam Prep study materials for 21 different securities licensing exams, including the SIE and the Series 3, 6, 7, 14, 22, 24, 26, 27, 28, 50, 51, 52, 53, 54, 63, 65, 66, 79, 82, and 99, visit the Solomon website.

The Power of Explaining: A Study Strategy Backed by Research

If you’re studying for the SIE, Series 65, Series 7, or another securities licensing exam, try this evidence-based study strategy. Continue reading

Updated June 23, 2022
Solomon Exam Prep’s learning system is built on understanding how people learn. Solomon is always looking for new ways to help our students learn more effectively and pass their securities exams.  

Research from Dr. Tania Lombrozo of UC Berkeley, published in the journal Trends in Cognitive Science, shows that explaining a new concept to another person is an enormously helpful learning technique. When you explain an unfamiliar concept to another person, your brain makes crucial learning connections. However, many people don’t have a person around them that is ready to listen to their new knowledge. Thus, Dr. Lombrozo recommends self-explanation, which is the practice of explaining concepts to yourself in order to better understand them.

Why does explaining work?

Dr. Lombrozo found that the positive effects of self-explanation can be attributed to the generalization process. Explaining requires you to put new information in the context of “prior beliefs,” which makes you generalize the information. In doing so, you’re forced to pick out what is most necessary for understanding the concept. In thinking about how to explain something, you in fact learn more about the thing itself!  

Dr. Lombrozo describes an experiment by psychologists Amsterlaw and Wellman that demonstrates the power of explaining in understanding. In Amsterlaw and Wellman’s experiment, they administered logic tests to children under various conditions. During the course of the experiment, the children were split into groups. One group would answer, and then they would be asked to explain the correct answer once it was revealed. A comparison group did the same, but only for half the problems. The third group was a control group and gave no explanation at all.

According to Amsterlaw and Wellman, “children in the explanation condition significantly outperformed the comparison and control groups….” In other words, explaining increased their understanding.

How to use this strategy for licensing exams:

What does this mean if you’re studying for the Series 65 or the Series 7 or some other securities licensing exam? Solomon Exam Prep suggests finding someone in your life who will listen to you explain topics from your securities exam prep. The person you choose doesn’t need to have any knowledge of securities. The person just needs to be a good listener. Even better, someone who will ask questions.

What if you don’t have anyone who can do that for you? Well, as Dr. Lombrozo showed, the practice of self-explanation is also helpful and will increase your understanding of the material you’re trying to learn.

Other recommended study strategies include:  

    • Listen to the Solomon Audiobook while you read the Solomon Study Guide.
    • As you read the Study Guide and watch the Solomon Video Lectures, take notes by hand.
    • When practicing in the Solomon Exam Simulator, read and re-read the question at least twice. 
    • If you answer a question correctly, explain to yourself why it was correct before reading the question rationale.  
    • If you answer a question incorrectly, read the rationale carefully. Explain to yourself what the right answer is, and why. Write down the explanation in your notes. 
    • Study with a partner. Trade off testing each other on concepts and asking for an explanation.  

Visit the Solomon Exam Prep  website to explore study materials for 21 different securities licensing exams, including the SIE and the 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 SIE Practice Exam Now Available!

Meet the newest addition to Solomon Exam Prep’s lineup of free Sample Quizzes: the SIE Sample Exam! Visit the Solomon website to try it out. Continue reading

Meet the newest addition to Solomon Exam Prep’s lineup of free Sample Quizzes: the SIE Sample Exam! Like all Solomon Sample Quizzes, the SIE Sample Exam features questions from our industry-leading Online Exam Simulator. Questions are written by Solomon content experts, who are experienced in both investment education and the process of adult learning. 

But unlike other Solomon Sample Quizzes, the SIE Sample Exam is a FULL exam – it contains 75 questions, just like the real FINRA SIE exam – giving you an even better idea of what the actual exam is like. You will encounter easy, medium, and difficult questions so that you can more easily gauge your current knowledge of SIE content. 

All Solomon Sample Quizzes and Exams also provide instant feedback for each answer, with a full rationale to help you understand the WHY behind the what. Plus, you get a report at the end detailing your results and giving you the opportunity to review all the questions. 

Visit the Solomon website here to try out the SIE Sample Exam and explore free samples of quizzes for 21 different exams.

Solomon Study Question of the Month for April

This month’s study question from the Solomon Exam Prep Online Exam Simulator question database is now available. Continue reading

Study Question

This month’s study question from the Solomon Online Exam Simulator question database is now available.

*** Comment below or submit your answer to info@solomonexamprep.com to be entered to win a $20 Starbucks gift card.***

This question is relevant to the SIE and the Series 7, 14, 50, 52, and 54.

Question: A Municipal Finance Professional (MFP) hosted a $500 plate fundraiser for a governmental issuer. Does this event trigger a ban on business for two years?

A. Yes, it will trigger a ban because an MFP may not host a fundraiser.

B. Yes, it will trigger a ban because the cost per plate is above the de minimis amount.

C. No, it will not trigger a ban because the MFP did not contribute money, only time and space.

D. No, it will not trigger a ban because the MFP was holding the fundraiser, not the municipal dealer.

Correct Answer: A

Explanation: MFPs are not permitted to solicit funds for municipal issuers or their officials without triggering a two-year ban on business for their firm. Thus, holding fundraisers is not allowed. Municipal dealers are also forbidden from holding fundraisers.

To explore free samples of Solomon Exam Prep’s industry-leading online exam simulators for the SIE, Series 7, Series 14, Series 50, Series 52, Series 54, and other FINRA, MSRB, NASAA, and NFA exams, visit the Solomon website here.