Updated S24 – SS || Questions and 100% Verified Answers.
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Updated S24 – SS
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Updated S24 – SS
The letter of intent in a corporate underwriting is typically signed by which of the following parties? correct answers Issuer and Managing Underwriter
For WKSIs, shelf registration statements (SEC Rule 415) are: correct answers (i) Effective immediately;
(ii) good for three years; and
(iii) ...
Updated S24 – SS || Questions and 100% Verified Answers.
The letter of intent in a corporate underwriting is typically signed by which of the following
parties? correct answers Issuer and Managing Underwriter
For WKSIs, shelf registration statements (SEC Rule 415) are: correct answers (i) Effective
immediately;
(ii) good for three years; and
(iii) may use free writing communication.
The term statutory underwriter refers to: correct answers The syndicate manager in a firm
commitment underwriting.
Green Shoe clause correct answers (i) allows the underwriters to sell up to 15% more shares than
registered with the SEC; and
(ii) to be effective, must be disclosed in both the registration statement and the prospectus.
In a corporate offering, the spread has what components: correct answers (i) the manager's fee;
(ii) the underwriting fee; and
(iii) the concession
Under FINRA rules, which of the following must be included in selling group agreements?
correct answers (i) the public offering price; and
(ii) to whom and under what circumstances concessions may be allowed.
Which of the following stipulations must be contained in agreements among underwriters and in
selling group agreements between members? correct answers (i) the concession amounts; and
(ii) the selling price.
For a Nasdaq-listed IPO, the syndicate manager must notify Nasdaq as to what the public
offering price will be correct answers 6:45 pm on the night before the issue is to be released for
trading.
The rules governing transactions in unregistered securities between qualified institutional buyers
are described in: correct answers Rule 144A
Rule 144 allows a member to contact which of the following potential buyers of Rule 144 stock?
correct answers They may solicit customers who have expressed an interest in the stock within
the prior 10 business days and other members who have expressed an interest within the prior 60
calendar days.
Rule 144 applies to the sale of unregistered securities: correct answers Owned by affiliates or
nonaffiliates and the sale of control stock.
All of the following restricted securities are subject to the minimum holding period under SEC
Rule 144 except: correct answers Sales made by a deceased person's estate
, The maximum amount of securities that may be sold by an insider within a three-month period
under Rule 144 is: correct answers 1% of the shares outstanding or the average weekly volume
of trading in the previous four weeks, whichever is greater.
Form MC-400 is used for what? correct answers When a member firm is requesting from FINRA
permission to employ, not terminate.
A fictional name or DBA may be used, provided the name is filed with correct answers FINRA
and the SEC
FINRA charges members with assessments and fees based on correct answers Fees are
calculated based off of number of registered representatives and principals associated with a
member and the number of branch offices registered with FINRA
Assessments are based off of revenue (net of certain costs) from securities transactions.
Which of the following factors is are considered when determining if a location should be
designated as an office of supervisory jurisdiction? correct answers (i) Whether registered
persons at a location have regular contact with the public
(ii) The number of registered persons at a location
(iii) Whether the location is geographically distant from another OSJ of the firm
(iv) Whether the securities activities are diverse and/or complex
(v) Whether the member's registered persons are geographically dispersed
Any location used occasionally and by appointment is termed correct answers Office of
Convenience
Who has the authority to approve a statutorily disqualified person's application to become or
remain associated with a member in a purely clerical capacity? correct answers The Department
of Member Regulation
Under FINRA rules, principal transaction markups are determined by all of the following correct
answers (i) Dollar amount of the trade;
(ii) size and difficulty of the trade; and
(iii) any special costs incurred.
The relevant price from which to mark up the security is the current market price, not the actual
cost of the shares in inventory.
In an active competitive marketplace, the calculation of the markup, markdown, or commission
is based on the correct answers Inside market price
In an active, competitive market, the markup on stock sold as principal to a customer is based on
the correct answers Inside offer
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