sp_prepexec is explained a bit here:
http://jtds.sourceforge.net/apiCursors.html
Normally used by Ado (since it uses cursors to retrieve data)
Normally it would be like
sp_prepare..
sp_execute.. parameter query
sp_execute..parameter query
sp_execute..parameter query
sp_execute..parameter query
sp_unprepare
A one time query doesn't need sp_prepare,unprepare