Series 7 Exam Prep 4, New Issues, Underwriting, and Prospectus Delivery

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