For the SIE Exam 2025 brings similar challenges to previous years. The exam has changed very little from year to year. As a result, we highly recommend you focus on what’s likely to show up. In today’s post, we preview some core areas we expect you to continue to see in this year.
SIE Exam 2025: What to Expect
As in years past, we expect the SIE exam in 2025 to cover a broad range of topics. Largely an introductory exam, the SIE content depth is minimal. That said, there are some very specific topics to review that we expect will show up with some regularity.
First, understanding the different yields is very important. This is a basic topic within bonds, and has shown up for years. At Professional Exam Tutoring, we expect this topic to continue showing up on the SIE exam in 2025.
Specifically, you will need to know the order in which the yields are placed. For example, nominal yield (coupon), current yield, yield to maturity, and yield to call is the order to remember. Most people get confused when the order reverses itself with discount and premium prices. Make sure you know the difference.
What Else?
Next, one should expect several questions on the dreaded Options section. Generally speaking, the vast majority of students have no practical reason to know this topic. Most will never buy or sell an option. Most will also never use or recommend options at their job.
Nevertheless, as one of the most risky derivative and equity-adjacent products available, plenty of emphasis is given to this topic. Fortunately, on this exam, basic concepts, such as “in-the-money” and “out-of-the-money” will be tested. More complicated topics such as breakeven with hedging strategies are more rare, but fair game.
How to Prepare
To prepare yourself for this exam, step one is to be realistic with yourself. We recommend that you read the textbook as the ideal approach. However, many students just won’t do this. Be honest with yourself as to whether or not you will do this. With the proliferation of video courses, we find students less and less willing to read the text.
The text covers a lot more detail and a lot more material than the video courses from most providers so it is definitely a superior resource to videos. However, if you can’t find the time to read the textbook, then at a minimum try to get through all of the videos.
Next, try to leave yourself at least three weeks for practice questions. Our preferred curriculum provider is STC when it comes to the SIE exam. STC has eight practice exams and two greenlight exams that make up the core and most effective study material in our opinion.
We recommend that after reading the textbook or watching the videos, you work through the eight practice exams offered by STC. Take note of any definitions, rules, and formulas you continue to get wrong. Spend time every day reviewing your wrong answers, and move on to the next practice exam with the same process.
Ideally, you will want to take all of the practice exams at least two times each. Once your practice score reaches or exceed 80% fairly consistently you should be ready to go.
Overall, we expect the SIE exam in 2025 to change very little. The same study process as 2024 should work very well. For more information or if you need an SIE Exam Tutor, please feel free to reach out. Good luck!