Learn what a security entitles its holder to, and what it exposes them to - the product knowledge that carries the largest section of the FINRA Securities Industry Essentials exam.
You'll compare cash-flow rights and liquidation priority across common stock, preferred stock, and corporate bonds using an illustrated claims table, working from the difference that generates all the others: equity is a residual claim, debt is a contractual one. The module extends to rights, warrants, ADRs, and restricted stock. You'll then predict the direction of a bond's price change following an interest-rate move and compare the relative rate sensitivity of two bonds from maturity and coupon - learning why the inverse relationship gives you direction but not magnitude, and how to say so. Finally, you'll classify call, default, reinvestment, and liquidity risks for corporate and municipal debt in short scenarios, naming the risk a scenario actually illustrates rather than the one the product is famous for. No prior securities experience required. Passing the SIE is not a license or a securities registration. By the end of this course, you will be able to: - Compare cash-flow rights and liquidation priority between common stock, preferred stock, and corporate bonds using an illustrated table - Predict the direction of a bond's price change following a given interest-rate move and compare the two bonds using their maturity and coupon characteriztics - Classify call, default, reinvestment, and liquidity risks for corporate versus municipal bonds in brief client scenarios













