Module 1
Knowledge of Capital Markets: Free SIE Lessons
Learn how regulators, market participants, market structure, economic forces, and securities offerings fit together.
7 lessonsAbout 77 minCapital Markets16% of exam
Module overview
This section builds the market framework behind every later topic. Start with who regulates the industry, then connect the participants, markets, economy, and offering process.
Module 1
Lessons in order
Complete written lessons are open without an account.
- 1.1Who Regulates the Securities IndustryMeet the SEC, the federal regulator, and the SROs that police the industry under its watch. The exam tests who does what, so this lesson draws the org chart clearly.6 min read
- 1.2The Other Regulators and AgenciesFive bodies outside the SEC and the SROs shape the securities business: Treasury and the IRS, state regulators, the Federal Reserve, SIPC, and the FDIC. This lesson gives each one its job and separates the SIPC limit from the FDIC limit.11 min read
- 1.3Market Participants and Their RolesMeet the players in a securities transaction: investors, broker-dealers, advisers, issuers, market makers, and the clearing bodies behind them. The exam names a job and asks who does it, so this lesson pins one job to each player.14 min read
- 1.4How the Markets Are StructuredThe exam describes a transaction and asks which market it happened in. This lesson covers the primary, secondary, third, and fourth markets, and the questions that tell them apart.10 min read
- 1.5The Fed and Monetary PolicyMonetary policy belongs to the Federal Reserve and fiscal policy belongs to Congress. This lesson covers open market operations, the discount and federal funds rates, and which way bonds and stocks move when the Fed acts.10 min read
- 1.6The Economy and the MarketsRead a company's balance sheet and income statement, place the economy in the business cycle, and sort the indicators that track it. The lesson closes with GDP against GNP, the balance of payments, and what a weak dollar does.11 min read
- 1.7How Securities Come to MarketNew securities reach investors through an offering. This lesson covers who runs the deal, who carries the risk, which disclosure document buyers get, and when an offering can skip SEC registration.15 min read