Series 7 Exam Prep 86, Investment Banking and Corporate Financing

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 'firm commitment' (underwriter as principal, takes risk) and 'best efforts' (underwriter as agent, issuer retains risk) underwriting.

- How the underwriting spread is calculated and distributed among the manager, syndicate members, and selling group.

- The purpose and benefits of a shelf registration under SEC Rule 415, allowing seasoned issuers to sell pre-registered securities for up to three years.

- The underwriter's legal obligation to perform due diligence as a defense against liability under the Securities Act of 1933.

- The role of a Qualified Independent Underwriter (QIU) when a conflict of interest exists in an offering under FINRA Rule 5121.

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