Open Exam Prep

Open Exam Prep

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

  • [SIE] 18, Types of Corporate Bonds
    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 difference between secured bonds backed by assets and unsecured bonds (debentures) backed by credit.
    - How the risk and yield relationship applies to different types of corporate bonds.
    - The unique features of convertible bonds and their relationship to the underlying common stock.
    - The concept of "phantom income" and how zero-coupon bonds are taxed annually.
    - How to identify the riskiest types of debt, such as subordinated debentures.
    For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818
    4 min
  • [SIE] 17, Bond Pricing and Yields
    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 inverse relationship between bond prices and interest rates, often compared to a seesaw.
    - How to calculate a bond's Current Yield and why it differs from the fixed coupon rate.
    - The key differences between Current Yield (CY), Yield to Maturity (YTM), and Yield to Call (YTC).
    - A simple rule, "The Coupon is your Compass," for ranking yields on discount bonds (coupon is lowest).
    - How to use the same rule for ranking yields on premium bonds (coupon is highest) and avoid common exam traps.
    For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818
    5 min
  • [SIE] 16, Corporate Bonds Fundamentals
    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 definitions of par value, coupon rate, and maturity date for corporate bonds.
    - The fundamental inverse relationship between market interest rates and existing bond prices.
    - Why a bond's price decreases to trade at a discount when interest rates rise.
    - Why a bond's price increases to trade at a premium when interest rates fall.
    - How to use the "Interest Rate Seesaw" as a mental model to remember this key concept.
    For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818
    5 min
  • [SIE] 15, Rights and Warrants
    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 primary purpose of preemptive rights in protecting existing shareholders from dilution.
    - How the exercise price for rights is set below the current market price to create immediate value.
    - The role of warrants as long-term sweeteners, often attached to bonds or preferred stock.
    - Why warrants are issued with an exercise price above the current market value for future potential gain.
    - A simple mnemonic to distinguish between short-term rights and long-term warrants for exam day.
    For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818
    4 min
  • [SIE] 14, Types of Preferred Stock
    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 features of cumulative preferred stock and how dividend arrears are handled.
    - The characteristics of callable preferred stock and why it benefits the issuer.
    - How convertible preferred stock allows investors to switch to common stock and its impact on yield.
    - The unique advantage of participating preferred stock in sharing extra corporate profits.
    - How to identify which features favor the investor versus the corporation and common exam question formats.
    For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818
    5 min
  • [SIE] 13, Preferred Stock Basics

    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 dual nature of preferred stock as a hybrid security, blending features of both stocks and bonds.

    - How preferred stock provides a fixed dividend payment, calculated as a percentage of its par value.

    - The concept of liquidation preference and where preferred stockholders stand in the payout order during bankruptcy.

    - Why preferred stockholders typically do not have the voting rights that are granted to common stockholders.

    - Common exam traps, including the inverse relationship between interest rates and preferred stock prices.


    For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818

    4 min
  • [SIE] 12, Common Stock - Dividends and Splits
    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 four key dates associated with cash dividend payments.
    - How to determine who is entitled to receive a dividend based on the trade date.
    - The impact of a stock dividend on an investor's number of shares and share price.
    - The difference between a forward stock split and a reverse stock split.
    - Why stock splits and stock dividends do not change an investor's total equity value.
    For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818
    4 min
  • [SIE] 11, Common Stock Fundamentals
    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 difference between statutory and cumulative voting rights.
    - Why common stockholders are not guaranteed dividends.
    - The key rights associated with stock ownership.
    - How to distinguish between meaningless par value and important market value.
    - The core factors that influence a stock's market price.
    For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818
    4 min
  • [SIE] 10, Market Participants
    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 distinct roles of broker-dealers, investment advisers, and market makers.
    - The definition of an agency transaction, where a firm acts as a broker.
    - The definition of a principal transaction, where a firm acts as a dealer.
    - How to identify the compensation for each role: commissions for agents and markups/markdowns for principals.
    - A mnemonic to remember the difference: ABC (Agent, Broker, Commission).
    For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818
    4 min
  • [SIE] 9, The Underwriting Process
    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 differences between firm commitment and best efforts underwriting and who bears the financial risk in each.
    - How an underwriting syndicate is formed to share risk among multiple investment banks.
    - The specific role of a selling group and why its members have no financial liability for unsold shares.
    - The purpose and rules of the 20-day cooling-off period in the IPO process.
    - What activities, such as distributing a red herring and taking indications of interest, are permitted and prohibited before a new issue becomes effective.
    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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