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 FINRASeries 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."
Co-founder and President of Solomon Exam Prep
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.
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.
If you’re studying for the Series 65, Series 7, or another securities licensing exam, try this evidence-based study strategy. Continue reading
Solomon Exam Prep’s learning system is built on understanding how people learn. Solomon Exam Prep is always looking for new ways to help our students.
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 do not 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 are 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 increases 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 does not 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 are trying to learn.
Other recommended Solomon study strategies include:
Listen to the Solomon audiobook while you read the Solomon study guide.
As you read the Solomon 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.
Solomon Exam Prep has helped thousands pass their 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.
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 FINRASIE 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.
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.
Do your customers know the difference between an IA and BD? Do you know the importance of this distinction and how it may affect your registration status? Continue reading
Do your customers know the difference between an investment adviser and broker-dealer? Do you know the importance of this distinction and how it may affect your registration status?
For many retail customers, the difference between an investment adviser (IA) and a broker-dealer (BD) may not seem important. A customer may have received an investment recommendation from a BD, or owned securities through an IA account. However, which kind of firm you work for is important for knowing which services you may provide, how you may provide them, and which qualification exams you must pass.
Investment advisers are usually firms, though they can be an individual operating as a sole proprietor, whose primary business is providing investment advice, and who are paid for the advice itself. Investment adviser representatives (IARs) are individuals who work for IAs and advise the IA’s clients on the IA’s behalf. IAs and IARs are not “stockbrokers” and cannot directly buy or sell securities for their customers. While many have IA accounts through which they own stocks, mutual funds, and other securities, in fact these are accounts an IA opens on the customer’s behalf with a BD.
Broker-dealers are usually firms, though they can be an individual operating as a sole proprietor, that execute securities transactions for customers. An individual who is employed by a BD to handle customer accounts is called an “agent of a broker-dealer” on some exams, or a “registered representative” (RR) on others. BDs can offer investment advice incidental to their work with customers but cannot be compensated for the advice itself. If a BD acts as an intermediary between a buyer and a seller, then the BD can charge a commission on the trade. If a BDs buys or sells from its own inventory, then the BD makes money by charging a markup on securities that they sell and taking a markdown on securities that they buy.
So, if you’re an IAR, you…
…can provide advice
…can be paid for that advice
…cannot execute trades
…cannot charge commissions or markups on your customer’s trades
If you’re a BD agent (also known as a registered representative), you…
…can provide advice
…cannot be paid for that advice
…can execute trades
…can charge commissions or markups on your customer’s trades
Testing and Licensing
Finally, many firms, especially larger ones, maintain both IA and BD registrations. When working for these “dual registrants,” you may be asked to qualify as an IAR, BD agent, or both, depending on your role.
In fact, an increase in dual registrations is one of the note-worthy trends Solomon discusses in our recent white paper, “Optimizing On-Boarding in 2021: 7 Key Trends for the Securities Industry,” available for download from this blog post.
This question is relevant to the Series14, 79, 82, and SIE exams.
A research analyst who works for an underwriter that participated in an IPO may not publicly discuss or write a research report about the company until __________________.
A. 30 days after the registration is filed
B. 20 days after the securities are issued
C. 10 days after the date of the IPO
D. 30 days after the date of the IPO
Correct Answer: C – 10 days after the date of the IPO
Explanation: A research analyst who works for an underwriter of an IPO must not discuss or write a research report about the company for 10 days after the IPO. This 10-day period of silence is called a ‘quiet period.’ There is no quiet period for EGCs (emerging growth companies).
To explore free samples of Solomon Exam Prep’s industry-leading online exam simulators for the SIE, Series 14, Series 79, Series 82, and many more exams, visit the Solomon website here.
Read our interview with Dominic Mamrega, a finance major at High Point University, who passed the SIE exam with Solomon’s self-study program. Continue reading
Dominic Mamrega is a finance major at High Point University in High Point, North Carolina. Dominic studied for the Securities Industry Essentials (SIE) exam in a self-study program using Solomon Exam Prep SIE materials. We interviewed Dominic after he passed the exam.
Solomon Exam Prep: Why did you decide to study finance and what is your dream job?
Dominic: I decided to study finance because growing up as a triplet my parents taught me the value of a dollar and how to properly save your money. It wasn’t easy for my parents, they had to buy three of everything. My father is great with numbers and taught me how to properly manage my money. My dream job has always been as a financial advisor/planner. There are many people who need financial help and I wanted to make a change.
Solomon Exam Prep: Why did you decide to take the SIE exam?
Dominic: I decided to take my SIE for two reasons. The first reason was I wanted to have an edge when applying to jobs and get ahead of the pack. The other reason I decided to take the SIE was I have a good friend who recently graduated HPU who is also in the field of finance and told me to get the ball rolling in order to land a job when I graduate in May 2021.
Solomon Exam Prep: Where do you work now and how did you get there?
Dominic: My current job is on campus working in the IT department which isn’t that exciting, and I got there by applying to every job on campus and waiting to hear back from one. My upcoming job when I graduate will be with Allied Wealth Partners as a Financial Advisor. I got there by looking at LinkedIn daily for job postings and applying to every single one. I went through the interview process with a few firms and had a great connection with Allied.
Solomon Exam Prep: How has the SIE helped you in your current job?
Dominic: The SIE has helped me land my current job because it showed Allied that I am eager and want to go in the field as fast as I can.
Solomon Exam Prep: How did you find Solomon Exam Prep?
Dominic: I chose Solomon when Professor James mentioned it to me in class one day. After I investigated it and when HPU had a discount code it was a no-brainer.
Solomon Exam Prep: What do you like about Solomon Exam Prep?
Dominic: There are many things I like about Solomon. The first one being the app that is for the phone and knowing I can study anywhere and anytime with ease. Throughout the day I will just take a quiz or read up on something. I like how the material is broken down with simple day-to-day tasks that do not overwhelm me. The ability to ask the professor and the quick response times you have. Finally, I enjoy the exam breakdowns and telling me where I should study more.
Solomon Exam Prep: What did you like about the Solomon Exam Prep SIE products?
Dominic: I enjoyed the website and how easy it is to navigate and go back to sections that I was struggling with. I enjoy the highlight feature that saves to a doc that I can print out and study from.
Solomon Exam Prep: Would you recommend the Solomon SIE course to other students? If yes, why?
Dominic: Yes, I would recommend the Solomon SIE course to other students because you are still able to handle the studying time while staying on top of your classwork.
Solomon Exam Prep: What other exams do you plan to take with Solomon?
Dominic: I am currently studying for Series 7 with Solomon and I will be taking that exam in late March. After that, I will be taking Series 66 with Solomon, and if all goes to plan that will be on June 1st.
For more information about Solomon Exam Prep’s compelling SIE program and the advantages for your students, contact Beth Hamilton at Beth@SolomonExamPrep.com or call 503-601-0212.
This question is relevant to the SIE, Series 6, 7, 22, 24, and 82 exams.
Which of the following people would be considered a specified adult?
A. A 16 year old with autism
B. A 30 year old
C. A 60 year old with a heart condition
D. An 18 year old in a coma
Correct Answer: D
Explanation: A specified adult is a natural person age 65 and older or a natural person age 18 and older who the member firm reasonably believes has a mental or physical impairment that renders the individual unable to protect his or her own interests.
On November 2, the SEC announced a collection of rule changes meant to, in the announcement’s words, “harmonize, simplify, and improve” its “overly complex exempt offering framework.” Continue reading
On November 2, the SECannounceda collection of rule changes meant to, in the announcement’s words, “harmonize, simplify, and improve” its “overly complex exempt offering framework.” The changes affect Regulation A, which governs small public offerings; Regulation D, which governs private placements; and Regulation CF, which governs crowdfunding. This system of exemptions allows various small offerings to avoid the normal registration process required by the Securities Act.
The rule changes should provide a clearer choice as to which exemption is most appropriate to an issuer, based on how much the issuer needs to raise and other factors.
The changes also seek to clarify how issuers can avoid “integration” of exempt offerings. Integration is the risk that exempt offerings will be considered a single offering by the SEC, because the offerings are too similar.
Highlights of the changes include:
If two exempt offerings are conducted more than 30 days apart, they are almost always protected from integration.
An issuer can “test the waters” with potential investors before deciding which exemption it will use for an offering.Test-the-waters communications solicit interest in a potential offering before the issuer has filed anything with the SEC.Previously, an issuer could only test the waters after deciding that its potential offering would take place under Regulation A.
Caps on the amount that may be raised through these exemptions have been increased:
Crowdfunding: from $1.07 million to $5 million
Regulation A, Tier 2: from $50 million to $75 million
Regulation D, Rule 504: from $5 million to $10 million
Make “bad actor” exclusions more consistent across different exemptions.
The rule changes will take effect early next year.Until the changes take effect, securities exam questions will continue to be based on the old rules. FINRA Exams affected by these rule changes include the SIE, Series 6, Series 7, Series 14, Series 22, Series 24, Series 65, Series 66, Series 79, and Series 82.