When it comes to the SIE Exam and Series 7 Exam, SIE memorization is necessary. However, so is deeper knowledge for the Series 7 Top-Off Exam. In today’s post we discuss the contrasting study approach between these two exams.
SIE Memorization vs Series 7 Knowledge…What Works?
With almost a decade of experience at Professional Exam Tutoring we’ve learned what works for these exams.
For the SIE Exam, memorizing your way through is possible and common. Many people pass this exam without truly understanding many components. We should point out, that this is totally fine. You can get by this exam simply memorizing the concepts underlying definitions, regulations, and formulas.
By contrast, however, the Series 7 Exam covers very similar material, but goes a little deeper. As a result, it’s much more difficult to memorize your way through the Series 7 exam. Deeper knowledge is often required to be successful with the Series 7 Exam. The Series 7 Top-Off difficulty level is a significant step up for most students. That said, passing the Series 7 is highly likely if you were able to pass the SIE Exam.
How to Approach the Series 7
The Series 7 exam involves similar topics such as options, margin, order types, new issues, municipal bonds, and many more. However, to successfully make your way through this exam we highly encourage you to spend a little extra effort while studying the SIE exam to understand the concept behind the definitions.
For example, understanding the difference between a revenue bond and a GO bond. For the Series 7 exam, knowing that a revenue bond pays its interest and principal using revenue generated from a specific municipal project (e.g., a toll road) can help. Why? Because you can extrapolate that a revenue bond is generally more risky than a GO municipal bond for an investor given that the revenue stream can dry up, whereas properties taxes levied by a municipality are more reliable sources of income.
Of course, this deeper understanding extends to more complicated topics like Options and Margin. Although there are still plenty of memory tricks you can implement for the Series 7 Exam such as “SLoBS and BLiSS”, you’ll find understanding the terminology much more effective.
Overall, it comes as no surprise that the SIE exam is much more digestible than the Series 7 exam. If you’re able to make it past the SIE exam, then be sure to give yourself a little extra time to learn the concepts for the Series 7. If you need any help, feel free to reach out. Good luck!