Open Exam Prep

By Ran Chen, EA, CFP®Education Courses

Open Exam Prep episodes

February 14 [Series 6] 8, Types of Mutual Funds by Objective
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and CFP designation. He is passionate about opening up information to help everyone prepare better for financial certification exams. This episode covers content for the Series 6 Exam exam — extract the exam name from the title tag, e.g. [SIE] = SIE Exam, [EA] = Enrolled Agent Exam.
In this episode you will learn:
- The primary objective of a growth fund and the ideal investor profile.
- How income funds generate returns and who they are most suitable for.
- The role of a balanced fund in a portfolio and its key characteristics.
- The purpose of a money market fund and its associated risks.
- A simple mnemonic to remember how to match each fund type to an investor's goal.
For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818
5 min
February 13 [Series 6] 7, Mutual Fund Expenses
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and CFP designation. He is passionate about opening up information to help everyone prepare better for financial certification exams. This episode covers content for the Series 6 Exam.
In this episode you will learn:
- How a mutual fund's expense ratio is calculated and the key costs it includes.
- The role of the management fee as the largest component of a fund's operating expenses.
- The purpose of 12b-1 fees, their use in marketing and distribution, and FINRA's annual cap.
- The specific rule that determines whether a fund can be marketed as "no-load" based on its 12b-1 fee.
- How small differences in fees can significantly impact an investor's total returns over the long term due to compounding.
For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818
4 min
February 12 [Series 6] 6, Net Asset Value Calculation
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and CFP designation. He is passionate about opening up information to help everyone prepare better for financial certification exams. This episode covers content for the Series 6 Exam.
In this episode you will learn:
- The exact formula for calculating a mutual fund's Net Asset Value (NAV).
- How to apply the NAV formula with a clear, step-by-step numerical example.
- The regulatory requirement for mutual funds to calculate NAV at least once daily.
- What "forward pricing" means and how it determines the price an investor receives.
- Common exam traps related to order timing and the difference between redemption price and purchase price.

For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818
4 min
February 11 [Series 6] 5, Breakpoint Violations
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and CFP designation. He is passionate about opening up information to help everyone prepare better for financial certification exams. This episode covers content for the Series 6 Exam.
In this episode you will learn:
- What a mutual fund breakpoint is and how it benefits investors.
- How to identify the prohibited practice of "breakpoint selling" in exam scenarios.
- The misleading and prohibited practice of "selling dividends" and why it harms clients.
- The role of a Letter of Intent (LOI) and Rights of Accumulation (ROA) in achieving breakpoints.
- A simple mnemonic to remember the key violations for exam day.
For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818
4 min
February 10 [Series 6] 4, Breakpoints and Sales Charge Reductions
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and CFP designation. He is passionate about opening up information to help everyone prepare better for financial certification exams. This episode covers content for the Series 6 Exam.
In this episode you will learn:
- The definition of mutual fund breakpoints and how they reduce sales charges for larger investments.
- How to use a Letter of Intent (LOI) to receive a breakpoint discount by committing to future investments over 13 months.
- How Rights of Accumulation (ROA) allow you to combine the current value of existing shares with new purchases to qualify for lower fees.
- The key differences between an LOI, which is based on intended future purchases, and ROA, which is based on current account value.
- How to identify and avoid the prohibited practice of "breakpoint selling," a major exam topic.
For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818
5 min
February 09 [Series 6] 3, Mutual Fund Share Classes
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and CFP designation. He is passionate about opening up information to help everyone prepare better for financial certification exams. This episode covers content for the Series 6 Exam.
In this episode you will learn:
- The key differences between Class A, B, and C mutual fund shares.
- How front-end loads, back-end loads (CDSCs), and level loads impact an investment.
- How breakpoints on Class A shares can reduce sales charges for large investments.
- To identify common suitability traps tested on the exam, matching share classes to client time horizons and investment amounts.
- A simple mnemonic to easily recall the fee structure of each share class.
For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818
4 min
February 08 [Series 6] 2, Open-End vs Closed-End Funds
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and CFP designation. He is passionate about opening up information to help everyone prepare better for financial certification exams. This episode covers content for the Series 6 Exam.
In this episode you will learn:
- How open-end funds continuously issue and redeem shares directly with investors.
- Why open-end funds are always priced based on the forward Net Asset Value (NAV) calculated once per day.
- The structure of closed-end funds, which have a fixed number of shares after an IPO.
- How supply and demand cause closed-end fund shares to trade at a premium or discount to their NAV on an exchange.
- A simple mnemonic to remember the key differences in capitalization, trading, and pricing that are frequently tested.
For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818
4 min
February 07 [Series 6] 1, Introduction to Investment Companies
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and CFP designation. He is passionate about opening up information to help everyone prepare better for financial certification exams. This episode covers content for the Series 6 Exam.
In this episode you will learn:
- The three types of investment companies defined by the Investment Company Act of 1940.
- How a Face-Amount Certificate promises a fixed future payout for a current investment.
- The structure of a Unit Investment Trust (UIT) as a fixed, unmanaged, and self-liquidating portfolio.
- The role of an investment adviser and board of directors in a Management Company.
- A mnemonic to distinguish between the three company types for your exam.
For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818
5 min
February 06 [SIE] 60, Suitability and Regulation Best Interest
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and CFP designation. He is passionate about opening up information to help everyone prepare better for financial certification exams. This episode covers content for the SIE Exam.
In this episode you will learn:
- The key components of a customer investment profile.
- How Regulation Best Interest (Reg BI) elevates the old suitability standard.
- The specifics of the Care Obligation and how it impacts recommendations.
- The role of the Disclosure Obligation and the Form CRS.
- How to identify and avoid common exam traps related to costs and conflicts of interest.
For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818
4 min
February 05 [SIE] 59, Registration and Licensing
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and CFP designation. He is passionate about opening up information to help everyone prepare better for financial certification exams. This episode covers content for the SIE Exam exam.
In this episode you will learn:
- The purpose and key information required on Form U4, including the 5-year residency and 10-year employment history.
- How the Central Registration Depository (CRD) system functions as the industry's central database for agent information.
- What events trigger a statutory disqualification, with a focus on the 10-year lookback period for felonies and specific misdemeanors.
- The process and timeline for filing Form U5 upon termination and the 2-year window to keep licenses active.
- The differences between the two types of Continuing Education: the Regulatory Element with its specific schedule and the annual Firm Element.
For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818
4 min

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