Episodes

  • Series 7 Exam Prep 10, Discretionary Accounts and Trading Authority

    Series 7 Exam Prep 10, Discretionary Accounts and Trading Authority
    Jun 17 2026
    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
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    3 mins
  • Series 7 Exam Prep 9, Account Registrations and Ownership Types

    Series 7 Exam Prep 9, Account Registrations and Ownership Types
    Jun 16 2026
    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
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    3 mins
  • Series 7 Exam Prep 8, Know Your Customer and Customer Investment Profile

    Series 7 Exam Prep 8, Know Your Customer and Customer Investment Profile
    Jun 15 2026
    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
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    3 mins
  • Series 7 Exam Prep 7, Customer Account Opening Basics

    Series 7 Exam Prep 7, Customer Account Opening Basics
    Jun 14 2026
    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
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    3 mins
  • Series 7 Exam Prep 6, Exempt Securities and Exempt Transactions

    Series 7 Exam Prep 6, Exempt Securities and Exempt Transactions
    Jun 13 2026
    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
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    4 mins
  • Series 7 Exam Prep 5, IPO Rules and New Issue Allocations

    Series 7 Exam Prep 5, IPO Rules and New Issue Allocations
    Jun 12 2026
    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
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    4 mins
  • Series 7 Exam Prep 4, New Issues, Underwriting, and Prospectus Delivery

    Series 7 Exam Prep 4, New Issues, Underwriting, and Prospectus Delivery
    Jun 11 2026
    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
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    4 mins
  • Series 7 Exam Prep 3, Broker-Dealer Business and Customer Solicitation

    Series 7 Exam Prep 3, Broker-Dealer Business and Customer Solicitation
    Jun 10 2026
    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 difference between correspondence, retail, and institutional communications based on the "25 retail investor" rule. - Why retail communications require pre-approval by a principal while correspondence and institutional communications do not. - The strict prohibition on projecting future investment performance in any client-facing material. - Key disclosure requirements for using testimonials in advertisements, a common exam trap. - How supervision rules apply to various marketing efforts like public seminars and product-specific ads. 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
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    3 mins