Prometric ScratchpadFINRA SIE Reference Sheet
Prometric Test-Day Reference Sheet
Memorize this single-page spatial reference to transcribe onto your Prometric scratchpad during the 15-minute tutorial.
ORO EXAM PREP — SIE PROMETRIC TEST-DAY REFERENCE SHEET
FINRA Securities Industry Essentials • Passing Score: 70% (75 Scored Qs / 105 Mins)
Single-Page Reference
SIE Essential Formulas & Blueprint
Current Yield (CY)
Annual Dividend or Interest / Current Market Price
Measures current cash income relative to market price for stocks and bonds.
Bond Price & Yield Relationship
Bond Price ↑ ⇒ Yield ↓ | Bond Price ↓ ⇒ Yield ↑
Bond prices move inversely with market interest rates across all maturities.
Rule of 72
72 / Annual Interest Rate = Years to Double
Estimates the number of years required for an investment to double at a fixed compound rate.
SIE High-Yield Regulatory Rules
- • Regular-Way Settlement: T+1 business day for US Equities, Corporate & Municipal Bonds, and US Treasuries.
- • Wash Sale Rule: Disallows capital loss if substantially identical security is bought within 30 days before or after the sale (61-day window).
- • FINRA Continuing Education: Regulatory Element completed annually; Firm Element delivered annually by member firms.
- • Insider Trading Sanctions: Civil treble damages (up to 3x profits or losses avoided); criminal fines up to $5M and 20 years imprisonment.
1. The Bond Seesaw (Price vs. Yield Relationships)
DISCOUNT (Price < Par)
NY < CY < YTM < YTC
PAR ($1,000)
NY = CY = YTM = YTC
PREMIUM (Price > Par)
YTC < YTM < CY < NY
2. Dividend Dates Sequence (DERP Mnemonic)
1. [D]eclaration: Board sets dividend • 2. [E]x-Dividend: Same day as Record (T+1) • 3. [R]ecord: Roster finalized • 4. [P]ayable: Cash disbursed.
3. Settlement Times (T+1 Rule) & Statutory Windows
Regular Way (Equities/Bonds/Options): T+1 (Cash = Same Day) • Reg T: T+3 • Freeze: 90d • Wash Sale: 61d • SIPC: $500k ($250k cash).
3. The Options Matrix (Calls & Puts)
| Position | Sentiment | Break-Even | Max Gain | Max Loss |
|---|---|---|---|---|
| Long Call (Buy) | Bullish | Strike + Premium | Unlimited | Premium Paid |
| Short Call (Sell) | Bearish | Strike + Premium | Premium Received | Unlimited |
| Long Put (Buy) | Bearish | Strike - Premium | Strike - Premium | Premium Paid |
| Short Put (Sell) | Bullish | Strike - Premium | Premium Received | Strike - Premium |