Open Exam Prep

Open Exam Prep

By Ran Chen, EA, CFP®EducationCourses
Download on the App Store

Open Exam Prep episodes

  • Series 7 Exam Prep 63, Market Makers, Specialists, and Trading Venues
    This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.
    In this episode you will learn:
    - The primary function of market makers as liquidity providers and the obligation of a 'firm quote'.
    - How a Designated Market Maker (DMM) on the NYSE operates in a dual capacity as either an agent or a principal.
    - The key differences between a stock exchange like the NYSE and an OTC quotation system.
    - The role of Alternative Trading Systems (ATS) and Electronic Communication Networks (ECNs) in modern trading.
    - Common Series 7 exam traps, including nominal quotes and the prohibited practice of 'backing away'.
    For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
    4 min
  • Series 7 Exam Prep 62, Primary and Secondary Markets
    This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.
    In this episode you will learn:
    - The primary market is where new securities are created and sold, with proceeds going directly to the issuing company.
    - The secondary market is where investors trade existing securities among themselves, and the issuer is not involved.
    - A firm acts as an agent (broker) when connecting buyers and sellers for a commission, and as a dealer (principal) when trading for its own account, profiting from the spread.
    - Exchanges are centralized auction markets, while over-the-counter (OTC) markets are decentralized, negotiated markets.
    - Market makers are dealers who provide liquidity by continuously quoting buy (bid) and sell (ask) prices, which enables smoother and more efficient trade execution.
    For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
    4 min
  • Series 7 Exam Prep 61, ACATS and Account Transfers
    This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.
    In this episode you will learn:
    - The roles of the carrying and receiving firms in an ACATS transfer.
    - The critical one-day validation and three-day transfer timeline.
    - Common reasons for a transfer to be rejected, such as mismatched account information.
    - How nontransferable assets like proprietary products are handled during a transfer.
    - The rules surrounding account freezes and partial transfers.
    For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
    4 min
  • Series 7 Exam Prep 60, Customer Confirmations and Account Statements
    This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.
    In this episode you will learn:
    - Trade confirmations must be sent at or before the settlement date (T+1 for most securities).
    - Firms must disclose their capacity on the confirmation: agent (commission) or principal (markup/markdown).
    - Account statements must be sent at least quarterly, unless the account holds penny stocks, which requires monthly statements.
    - For bond trades, the confirmation must disclose the yield to worst.
    - Customer account records must be kept for six years after the account is closed.
    For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
    4 min
  • Series 7 Exam Prep 59, Settlement, Ex-Dividend, and Due Bills
    This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.
    In this episode you will learn:
    - Regular-way settlement for most securities is now T+1 (trade date plus one business day).
    - The ex-dividend date is now the same as the record date, and you must purchase a stock *before* the ex-date to receive the dividend.
    - The DERP mnemonic helps recall the dividend timeline: Declaration, Ex-dividend, Record, and Payable.
    - An investor purchasing a stock via cash settlement on the record date is entitled to the dividend, a common exam exception.
    - A due bill is an instrument used to ensure a buyer receives a dividend they are entitled to if a trade settles late.
    For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
    3 min
  • Series 7 Exam Prep 58, Short Sales and Regulation SHO
    This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.
    In this episode you will learn:
    - The core mechanics of a short sale, including the concept of borrowing and returning shares.
    - The critical requirements of Regulation SHO, including the 'locate,' order marking, and mandatory close-out rules.
    - The distinction between using short sales for speculation versus hedging a long position.
    - The dynamics of a short squeeze and how it creates significant risk for short sellers.
    - The most critical exam trap: understanding that the maximum loss on an unhedged short sale is unlimited.
    For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
    4 min
  • Series 7 Exam Prep 57, Order Handling and Best Execution
    This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.
    In this episode you will learn:
    - That best execution is the best overall outcome for a customer, not just the best price, considering factors like speed and likelihood of execution.
    - The critical difference between a binding 'firm quote' and a non-binding, informational 'subject quote' or 'nominal quote'.
    - That customer orders always have priority over a firm's proprietary trades at the same price, a concept known as the priority of public orders.
    - How broker-dealers must use a firm-level error account to correct order entry mistakes, ensuring the customer is always made whole.
    - Key prohibited trading practices like 'trading ahead' of customer orders and 'front-running' based on non-public block trade information.
    4 min
  • Series 7 Exam Prep 56, Order Types
    This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.
    In this episode you will learn:
    - Market orders guarantee execution, while limit orders guarantee a specific price or better.
    - Stop orders are triggered by a trade at or through the stop price, at which point they become market orders to be executed at the next available price.
    - Stop-limit orders are also triggered at the stop price, but they become limit orders, adding a layer of price control but risking non-execution in a fast market.
    - The mnemonic 'SLOBS over BLISS' helps remember order placement: Sell Limits and Buy Stops are placed above the market, while Buy Limits and Sell Stops are placed below.
    - Key differences in order qualifiers: Fill-or-Kill (FOK) must be filled entirely and immediately, Immediate-or-Cancel (IOC) allows for partial fills, and All-or-None (AON) must be filled entirely but not necessarily immediately.
    For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
    4 min
  • Series 7 Exam Prep 55, Portfolio Margin and Special Margin Risks
    This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.
    In this episode you will learn:
    - The concept of portfolio margin and how it differs from standard margin accounts.
    - The specific rules and risks associated with day trading, including the definition of a pattern day trader and the minimum equity requirements.
    - How concentrated positions and low-priced securities are handled in a margin account, including their special margin requirements.
    - The margin treatment of options, distinguishing between standard options and LEAPS.
    - The key suitability factors that determine whether margin trading is appropriate for an investor, focusing on risk tolerance and financial resources.
    For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
    5 min
  • Series 7 Exam Prep 54, Short Margin Calculations
    This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.
    In this episode you will learn:
    - The fundamental short margin account formula: Credit Balance - Short Market Value = Equity.
    - How to calculate the initial credit balance by combining short sale proceeds and the Regulation T deposit.
    - The impact of rising and falling stock prices on the equity in a short margin account.
    - How to determine the FINRA minimum maintenance requirement, which is 30% of the Short Market Value.
    - The calculation for Special Memorandum Account (SMA) and how it's created from excess equity.
    For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
    5 min

About Open Exam Prep

From the publisher's feed

Open Exam Prep: Mastering Financial Exams

More shows like Open Exam Prep

the EARN YOUR MARKS podcast by ProExamTutors

the EARN YOUR MARKS podcast

14 Listeners