Open Exam Prep

Ran Chen, EA, CFP®

Open Exam Prep: Mastering Financial Exams

The path to becoming a certified financial professional is known for its difficulty, and finding high-quality, accessible study material shouldn't be the hardest part.

Created by Ran Chen—an AI application enthusiast, Financial Advisor, and holder of the EA (Tax), Life Insurance, Series 6/63/65, and CFP® designations—this podcast was born from personal experience. Having navigated these challenging exams himself, Ran realized the need for better resources and created Open Exam Prep as a free solution for aspiring professionals.

Each episode breaks down complex major exam topics into clear, digestible lessons, covering everything from tax planning and estate strategies to retirement solutions and investment principles. Whether you’re studying during your commute, workout, or downtime, we are here to guide you—one question, one topic, one victory at a time.

Visit for more content: https://open-exam-prep.com/

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August 6 · 3 min
Series 7 Exam Prep 60, Customer Confirmations and Account Statements
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: - Trade confirmations must be sent at or before the settlement date (T+1 for most securities). - Firms must disclose their capacity on the confirmation: agent (commission) or principal (markup/markdown). - Account statements must be sent at least quarterly, unless the account holds penny stocks, which requires monthly statements. - For bond trades, the confirmation must disclose the yield to worst. - Customer account records must be kept for six years after the account is closed. 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
August 5 · 2 min
Series 7 Exam Prep 59, Settlement, Ex-Dividend, and Due Bills
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: - Regular-way settlement for most securities is now T+1 (trade date plus one business day). - The ex-dividend date is now the same as the record date, and you must purchase a stock *before* the ex-date to receive the dividend. - The DERP mnemonic helps recall the dividend timeline: Declaration, Ex-dividend, Record, and Payable. - An investor purchasing a stock via cash settlement on the record date is entitled to the dividend, a common exam exception. - A due bill is an instrument used to ensure a buyer receives a dividend they are entitled to if a trade settles late. 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
August 4 · 3 min
Series 7 Exam Prep 58, Short Sales and Regulation SHO
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 core mechanics of a short sale, including the concept of borrowing and returning shares. - The critical requirements of Regulation SHO, including the 'locate,' order marking, and mandatory close-out rules. - The distinction between using short sales for speculation versus hedging a long position. - The dynamics of a short squeeze and how it creates significant risk for short sellers. - The most critical exam trap: understanding that the maximum loss on an unhedged short sale is unlimited. 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
August 3 · 3 min
Series 7 Exam Prep 57, Order Handling and Best Execution
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: - That best execution is the best overall outcome for a customer, not just the best price, considering factors like speed and likelihood of execution. - The critical difference between a binding 'firm quote' and a non-binding, informational 'subject quote' or 'nominal quote'. - That customer orders always have priority over a firm's proprietary trades at the same price, a concept known as the priority of public orders. - How broker-dealers must use a firm-level error account to correct order entry mistakes, ensuring the customer is always made whole. - Key prohibited trading practices like 'trading ahead' of customer orders and 'front-running' based on non-public block trade information.
August 2 · 3 min
Series 7 Exam Prep 56, Order 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: - Market orders guarantee execution, while limit orders guarantee a specific price or better. - Stop orders are triggered by a trade at or through the stop price, at which point they become market orders to be executed at the next available price. - Stop-limit orders are also triggered at the stop price, but they become limit orders, adding a layer of price control but risking non-execution in a fast market. - The mnemonic 'SLOBS over BLISS' helps remember order placement: Sell Limits and Buy Stops are placed above the market, while Buy Limits and Sell Stops are placed below. - Key differences in order qualifiers: Fill-or-Kill (FOK) must be filled entirely and immediately, Immediate-or-Cancel (IOC) allows for partial fills, and All-or-None (AON) must be filled entirely but not necessarily immediately. 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
August 1 · 4 min
Series 7 Exam Prep 55, Portfolio Margin and Special Margin Risks
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 concept of portfolio margin and how it differs from standard margin accounts. - The specific rules and risks associated with day trading, including the definition of a pattern day trader and the minimum equity requirements. - How concentrated positions and low-priced securities are handled in a margin account, including their special margin requirements. - The margin treatment of options, distinguishing between standard options and LEAPS. - The key suitability factors that determine whether margin trading is appropriate for an investor, focusing on risk tolerance and financial resources. 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
July 31 · 4 min
Series 7 Exam Prep 54, Short Margin Calculations
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 fundamental short margin account formula: Credit Balance - Short Market Value = Equity. - How to calculate the initial credit balance by combining short sale proceeds and the Regulation T deposit. - The impact of rising and falling stock prices on the equity in a short margin account. - How to determine the FINRA minimum maintenance requirement, which is 30% of the Short Market Value. - The calculation for Special Memorandum Account (SMA) and how it's created from excess equity. 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
July 30 · 3 min
Series 7 Exam Prep 53, Long Margin Calculations
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 fundamental long margin formula: LMV - Debit = Equity. - How to calculate the initial Regulation T requirement of 50% and FINRA's minimum initial deposit. - The ongoing minimum maintenance requirement of 25% of the Long Market Value. - How excess equity creates a Special Memorandum Account (SMA) and 2-to-1 buying power. - The rules and implications of a restricted margin account. 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
July 29 · 4 min
Series 7 Exam Prep 52, Margin Account Fundamentals
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 core formula for long margin accounts: Long Market Value (LMV) - Debit Register (DR) = Equity (EQ). - Regulation T requires an initial margin deposit of 50% of the purchase value for new margin positions. - How market value appreciation creates excess equity, which generates a Special Memorandum Account (SMA), a line of credit for the investor. - The difference between a restricted account (equity below 50%) and a maintenance margin call (equity below FINRA's 25% minimum). - How to calculate the market value at which a maintenance call will be triggered by dividing the debit balance by 0.75. 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
July 28 · 3 min
Series 7 Exam Prep 51, Options Taxation and Exercise
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: - That exercising an option is not an immediate taxable event; it adjusts the cost basis or sales proceeds of the stock. - The mnemonic "Call Up, Put Down" to remember that for calls you add the premium to the strike price, and for puts you subtract it. - How buying a protective put can reset the holding period of a stock held for one year or less. - The unique tax treatment of covered calls, where the stock's original cost basis is maintained upon assignment. - The special 60/40 tax rule for broad-based index options under Section 1256, where gains are 60% long-term and 40% short-term. 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
July 27 · 2 min
Series 7 Exam Prep 50, Options Disclosure and Account Approval
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 Options Disclosure Document (ODD) must be delivered to a client at or before the account is approved by a Registered Options Principal (ROP). - A client has 15 calendar days from the date of account approval to sign and return the options agreement. - If the signed options agreement is not returned within 15 days, the account is restricted to closing transactions only. - Only a qualified Registered Options Principal (ROP) can approve a new options account in writing before the first trade occurs. - All retail communications about options must be pre-approved by an ROP and must not contain misleading performance projections. 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
July 26 · 4 min
Series 7 Exam Prep 49, Options Hedging and Income Strategies
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: - A covered call is used to generate income on a long stock position, but it caps the potential upside gain. - A protective put acts like insurance for a long stock position, providing downside protection while allowing for unlimited potential gain. - A collar combines a protective put with a covered call to provide downside protection at a reduced cost, but it also limits upside potential. - A cash-secured put is a strategy used to acquire stock at a price below its current market value by selling a put option and setting aside the cash to purchase the shares. - How to calculate breakeven, maximum gain, and maximum loss for each of these core Series 7 options strategies. 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
July 25 · 3 min
Series 7 Exam Prep 48, Straddles and Combinations
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: - A long straddle (buying a call and a put) is for investors expecting high volatility, with unlimited gain potential and a maximum loss equal to the premiums paid. - A short straddle (selling a call and a put) is for investors expecting low volatility, with a maximum gain equal to the premiums received and unlimited loss potential. - Straddles have two breakeven points, calculated by adding and subtracting the total premium from the strike price. - Combinations are similar to straddles but involve options with different strike prices or expiration dates. - The mnemonic SILO helps remember the profit zones: Short Inside (you want the price between the breakevens) and Long Outside (you want the price beyond the breakevens). 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
July 24 · 3 min
Series 7 Exam Prep 47, Options Spreads
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 to identify a spread as a debit or credit and its implications for max gain and loss. - The method for determining if a spread is bullish or bearish, even without given premiums. - Step-by-step calculations for maximum gain, maximum loss, and breakeven for both call and put spreads. - The difference between wanting a spread to widen versus narrow and its relation to exercise or expiration. - A mnemonic to easily remember the desired outcome for debit and credit spreads. 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
July 23 · 4 min
Series 7 Exam Prep 46, Covered Calls and Protective Puts
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: - A covered call is an income strategy where you sell a call against a stock you own, capping your upside but lowering your breakeven point. - The breakeven for a covered call is the stock's cost basis minus the premium received. - A protective put is a risk management strategy where you buy a put to set a floor on the potential loss of a stock you own. - The breakeven for a protective put is the stock's cost basis plus the premium paid. - Suitability is key: covered calls are for neutral-to-bullish investors seeking income, while protective puts are for bullish investors seeking downside protection. 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
July 22 · 3 min
Series 7 Exam Prep 45, Short Calls and Short Puts
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: - Selling an option creates an obligation to either sell stock (short call) or buy stock (short put). - The maximum gain for any short option position is always limited to the premium collected. - A short uncovered call has unlimited maximum loss, making it one of the riskiest equity strategies. - The breakeven for a short call is the strike price plus the premium; for a short put, it's the strike price minus the premium. - Due to their high-risk nature, uncovered short options are unsuitable for conservative, risk-averse investors. 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
July 21 · 3 min
Series 7 Exam Prep 44, Long Calls and Long Puts
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: - A long call is a bullish strategy with unlimited maximum gain and a maximum loss limited to the premium paid. - A long put is a bearish strategy where the maximum gain is the strike price minus the premium, and the maximum loss is the premium paid. - The breakeven point for a long call is calculated by adding the premium to the strike price (Strike + Premium). - The breakeven point for a long put is calculated by subtracting the premium from the strike price (Strike - Premium). - Use the mnemonic "Call Up, Put Down" to remember the breakeven calculations: for calls, you add the premium to the strike; for puts, you subtract. 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
July 20 · 3 min
Series 7 Exam Prep 43, Options Contract 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: - A call option gives the buyer the right to buy a stock, while a put option gives the right to sell. - An option's premium is composed of its intrinsic value (the in-the-money amount) and its time value. - A call is 'in-the-money' when the market price is above the strike price; a put is 'in-the-money' when the market price is below the strike price. - Exercise is the act of the buyer using their right, while assignment is the seller being obligated to fulfill the contract. - Options trading requires special account approval and risk disclosure due to the complexity and potential for significant losses. 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
July 19 · 3 min
Series 7 Exam Prep 42, Variable Life and Insurance Products
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: - That in variable insurance products, the policyholder bears the investment risk, and the cash value fluctuates based on the performance of the separate account. - The key difference between Variable Life (fixed premiums) and Variable Universal Life (flexible premiums and death benefits). - That the separate account holds the investment subaccounts for variable contracts, segregated from the insurer's general account. - Since variable contracts are securities, they must be sold with a prospectus and require both insurance and securities licenses to sell. - While the cash value is not guaranteed, a variable life policy has a minimum guaranteed death benefit. 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
July 18 · 5 min
Series 7 Exam Prep 41, Variable Annuity Suitability and Exchanges
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: - Why FINRA Rule 2330 is the critical regulation for variable annuity recommendations and the specific customer information required. - How to identify and analyze common exam traps related to deferred sales charges (CDSCs), bonus credits, and different share classes. - The key tax consequences of variable annuity withdrawals, including ordinary income treatment, LIFO accounting for earnings, and early withdrawal penalties. - The stringent suitability considerations for 1035 exchanges, including the 36-month rule and the need to demonstrate a clear client benefit. - The heightened suitability standards for senior investors and the crucial role of principal review and approval in the sales process.

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