The securities industry encompasses a wide range of organizations, professionals, and activities in the finance sector. It focuses on the oversight and management of financial instruments. Securities are contracts that give buyers and sellers the right to buy or sell an asset at some point in the future. Securities are also used as investment vehicles, including mutual funds and exchange-traded funds.
The securities industry is regulated by the U.S. Securities and Exchange Commission (SEC). Securities offerings are required to be registered with the Securities and Exchange Commission (SEC). Securities are also subject to regulation by state securities departments. Many brokerage firms take on regulatory roles, such as the Financial Industry Regulatory Authority (FINRA). Several factors define whether a security offering is a legitimate financial instrument. First, the offering must be “public” in order to be regulated by the SEC. Second, the securities must be “marketable” in order to be traded in the securities market.
A career in the securities industry requires a high level of analytical and mathematical skills. In addition, you must be able to build strong relationships with clients. You must be able to communicate effectively and be able to listen to your clients’ needs. A securities professional must also be proactive and consistently follow up with clients, including prospective clients.
There are various types of exams offered for securities professionals. The Securities Industry Essentials Exam covers the fundamental concepts of securities and their uses. The exam has four sections. The table below provides an overview of the exam content.