Open Exam Prep

Open Exam Prep

By Ran Chen, EA, CFP®EducationCourses
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Open Exam Prep episodes

  • Series 7 Exam Prep 13, Education Accounts and Tax-Advantaged Savings
    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 key differences between 529 plans and Coverdell ESAs regarding contribution limits and income restrictions.
    - Who maintains control over the assets in 529 plans versus Coverdell ESAs and custodial (UGMA/UTMA) accounts.
    - The definition of qualified education expenses for each type of account and how this is tested.
    - The tax treatment of contributions, earnings growth, and withdrawals for both qualified and non-qualified expenses.
    - Suitability considerations and common exam scenarios for recommending education savings vehicles to clients.
    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 12, Retirement Accounts and ERISA Basics
    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 critical tax differences between Traditional IRAs (pre-tax, taxed later) and Roth IRAs (post-tax, tax-free later) and how it impacts suitability.
    - The distinction between a defined benefit plan, where the employer bears the investment risk, and a defined contribution plan, where the employee bears the risk.
    - The rules for moving retirement funds, including the 60-day rollover rule versus a direct trustee-to-trustee transfer.
    - Key exceptions to the 10% early withdrawal penalty, such as death, disability, and first-time home purchases.
    - The fundamental fiduciary responsibilities imposed by ERISA on qualified retirement plans, including the prudent person rule.
    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 11, Margin Accounts and Customer Agreements
    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 three components of the margin agreement: the credit agreement, hypothecation agreement, and the optional loan consent form.
    - Key risks outlined in the mandatory margin disclosure statement, including the potential to lose more than invested.
    - The definitions of market value, debit balance, and how to calculate customer equity.
    - How Regulation T and FINRA's minimum equity requirements work for opening a margin account.
    - The function of the Special Memorandum Account (SMA) as a line of credit and how it generates buying power.
    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 10, Discretionary Accounts and Trading Authority
    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 three elements that define a discretionary trade: Asset, Action, and Amount (the three 'A's').
    - The critical difference between full discretion, which requires written authorization, and time and price discretion, which can be granted verbally for one day.
    - The two essential requirements for establishing a discretionary account: the client's prior written power of attorney and a principal's written acceptance.
    - The supervisory responsibilities of a principal, including the frequent review of discretionary account activity to prevent churning.
    - Common Series 7 exam traps, such as confusing a client's verbal instructions with the legally required written authorization for discretionary trading.
    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 9, Account Registrations and Ownership 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:
    - In a Joint Tenants with Rights of Survivorship (JTWROS) account, assets pass directly to the surviving owner, avoiding probate, whereas in a Tenants in Common (TIC) account, the deceased's share goes to their estate.
    - A Transfer on Death (TOD) designation on an individual or joint account allows assets to bypass probate and go directly to a named beneficiary.
    - For corporate and partnership accounts, the firm must obtain a corporate resolution or partnership agreement to identify which individuals are authorized to trade.
    - Custodians of UGMA/UTMA accounts have a fiduciary duty, meaning they cannot use account assets for parental support obligations or engage in speculative trading.
    - Fiduciaries, such as trustees and estate executors, are governed by the Prudent Investor Rule and must provide legal documentation to prove their authority.
    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 8, Know Your Customer and Customer Investment Profile
    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:
    - How FINRA's Know Your Customer (KYC) rule provides the foundation for all investment recommendations.
    - The key elements of a customer's investment profile, including financial and non-financial considerations.
    - How Regulation Best Interest (Reg BI) elevates the suitability standard, requiring you to act in the client's best interest.
    - The critical difference between a customer's financial ability to take risks and their personal willingness to do so.
    - Common exam traps, such as focusing on a single client attribute instead of the entire investment profile.
    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 7, Customer Account Opening Basics
    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 four essential pieces of customer information required by the Customer Identification Program (CIP): name, date of birth, address, and tax ID number.
    - A registered principal's approval and signature are mandatory on the new account form before any trading can commence.
    - While a customer's signature is not required on the new account form, it is necessary for other documents like margin agreements.
    - Firms must make a reasonable effort to obtain a trusted contact person's information, but the customer is not required to provide one.
    - The customer agreement must be sent to the client within 30 days of opening the account and the account information must be verified every 36 months.
    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 6, Exempt Securities and Exempt Transactions
    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 critical distinction between exempt securities (based on the issuer) and exempt transactions (based on how the security is sold), a common point of confusion on the exam.
    - The specific financial thresholds for an individual to be considered an accredited investor under Regulation D: over $1 million in net worth or an income of $200,000 ($300,000 for joint).
    - The requirements of Rule 144, which dictates a six-month holding period for restricted securities and imposes volume limitations on sales by corporate affiliates.
    - The difference between an accredited investor and a Qualified Institutional Buyer (QIB), with QIBs being institutions managing at least $100 million in securities for Rule 144A transactions.
    - The key provisions of major exemptions like Regulation A (small issues), Rule 147 (intrastate offerings), and Regulation D (private placements).
    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 5, IPO Rules and New Issue Allocations
    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 definition of 'restricted persons' under FINRA Rule 5130 and who is prohibited from buying common stock IPOs.
    - How the violation of 'free-riding and withholding' applies to 'hot issues' and the requirement for a bona fide public offering.
    - The rules around prospecting and accepting indications of interest during a new issue's cooling-off period.
    - How to identify a conflict of interest under FINRA Rule 5121 and the role of a Qualified Independent Underwriter (QIU).
    - The principles of fair allocation and the prohibition of 'spinning' IPO shares as a quid pro quo for other business.
    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 4, New Issues, Underwriting, and Prospectus Delivery
    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 issuance process begins with filing an S-1 registration statement, which initiates a 20-day cooling-off period for SEC review.
    - During the cooling-off period, underwriters use a preliminary prospectus, or red herring, to gather non-binding indications of interest.
    - The underwriting syndicate assumes risk, typically in a firm commitment, while the selling group assists in sales without financial liability for unsold shares.
    - The underwriting spread compensates the syndicate and selling group, with the selling concession being the largest component paid to the firm that makes the sale.
    - Prospectus delivery is required for a set period after the effective date: 25 days for listed IPOs and 90 days for unlisted IPOs.
    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

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