Trading, Settlement & Returns
Trading questions test order instructions, trade capacity, return components, settlement timing, dividend dates, and corporate actions.
How to study the SIE
Learn the concept vocabulary first, then drill products, risks, rules, and prohibited-conduct patterns until they feel automatic.
Core concepts
Concept 1
Order type, time instruction, solicited status, discretion, bid-ask side, and principal versus agency capacity change the answer.
Exam cue: For orders, identify price condition first: market, limit, stop, or GTC.
Concept 2
Return questions may involve interest, dividends, realized and unrealized gains, basis points, yield, total return, and cost basis.
Exam cue: For dividend questions, place declaration, ex-date, record date, and payable date in sequence.
Concept 3
Settlement, stock splits, tender offers, rights offerings, mergers, proxies, and record dates must be read in timeline order.
Exam cue: For math, write the unit first: dollars, percent, basis points, yield, or shares.
Targeted study blocks
Math cue
Basis point checkpoint
Convert basis points before solving: 100 basis points equals 1%, and 25 basis points equals 0.25%.
Risk pitfalls and guardrails
Confusing bid and ask.
Guardrail: Eliminate answers that sound financial but miss the exact SIE rule or product feature.
Mixing up record date and ex-dividend date.
Guardrail: Eliminate answers that sound financial but miss the exact SIE rule or product feature.
Forgetting that a split changes share count and price but not total market value by itself.
Guardrail: Eliminate answers that sound financial but miss the exact SIE rule or product feature.
Memory anchors
Market Order
Execute promptly at the best available price.
Limit Order
Sets the worst acceptable price.
Stop Order
Becomes a market order when triggered.
Bid
Price a dealer is willing to pay.
Ask
Price a dealer is willing to sell at.
Principal
Firm trades from its own account.
T+1 Settlement
Most regular-way U.S. securities transactions settle one business day after trade date.
Basis Point
One one-hundredth of one percent.
Ex-Date
Buyer on or after this date does not receive the dividend.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
A customer wants immediate execution and accepts uncertainty about price. Which order is most appropriate?
A customer will buy a stock only at $40 or lower. Which order should be entered?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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