
About this episode
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
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