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Open Exam Prep · Today · 3 min

Series 7 Exam Prep 89, Markups, Markdowns, and Commissions

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 a broker-dealer acting as an agent (broker) versus a principal (dealer). - How commissions are charged in agency transactions, and markups/markdowns in principal transactions. - The application and, more importantly, the exceptions to the FINRA Five Percent Policy. - Key confirmation disclosure requirements for different types of transactions. - Common exam traps such as riskless principal transactions and the concept of a net trade. 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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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 a broker-dealer acting as an agent (broker) versus a principal (dealer).
- How commissions are charged in agency transactions, and markups/markdowns in principal transactions.
- The application and, more importantly, the exceptions to the FINRA Five Percent Policy.
- Key confirmation disclosure requirements for different types of transactions.
- Common exam traps such as riskless principal transactions and the concept of a net trade.

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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