Module 3
Understanding Trading, Customer Accounts and Prohibited Activities: Free SIE Lessons
Follow orders and settlement through customer accounts while learning the conduct rules that protect markets and investors.
9 lessonsAbout 125 minTrading and Accounts31% of exam
Module overview
This section connects trading mechanics with account handling and professional conduct. Focus on who may act, what records are required, and which activities are prohibited.
Module 3
Lessons in order
Complete written lessons are open without an account.
- 3.1Orders and Trading StrategiesThis lesson covers the language of an order ticket: the four order types, how long an order stands, who chose the trade, and the capacity the firm traded in. It also covers long and short positions, covered and naked positions, and bullish and bearish strategies.15 min read
- 3.2Returns, Dividends, and YieldMoney comes back to an investor as interest, dividends, gains, and return of capital. This lesson names each one, puts the four dividend dates in order under T+1, and shows which yield measure answers which question.14 min read
- 3.3Settlement and Corporate ActionsA trade is not done when it is executed, and the shares you hold can change while you own them. This lesson covers the T+1 settlement clock, book entry delivery, splits, buybacks, tender offers, rights, and proxy voting.13 min read
- 3.4Account Types and RegistrationsCash, margin, and options accounts set what a customer may do; the registration sets who owns the account and what happens to it at death. This lesson covers both, plus the retirement and education accounts the exam pairs with them.14 min read
- 3.5Anti-Money LaunderingMoney laundering hides criminal money inside ordinary-looking transactions, and every broker-dealer has to help stop it. This lesson covers the three stages, the AML program a firm runs, the two reports it files with FinCEN, and the OFAC sanctions list it screens against.13 min read
- 3.6Books, Records, and Customer PrivacyA broker-dealer must keep records, report to customers, and protect what customers hand over. This lesson covers retention periods, confirmations and statements, mail holds, business continuity plans, custody of customer assets, and Regulation S-P.13 min read
- 3.7Communications, KYC, and Best InterestRules govern how a firm reaches people and what it owes the people it advises. This lesson covers the three communication categories and their approval rules, telemarketing and the do-not-call list, know your customer, Regulation Best Interest, and what makes something a recommendation.15 min read
- 3.8Market Manipulation and Insider TradingMarket manipulation covers the practices that fake a security's price or demand, from pump and dump to backing away. Insider trading covers trading on material nonpublic information, and this lesson names the parties and the penalties.14 min read
- 3.9The Other Prohibited ActivitiesSection 3.3.3 gathers the prohibited activities outside market manipulation and insider trading. This lesson covers IPO restrictions for insiders, misuse of customer money, borrowing and sharing, holds that protect older customers, unregistered persons, and false documents and records.14 min read