Stabilizing Bids correct answers Entered at or below Public Offering Price
If current market exists, bid can't be higher then POP
Stops when the syndicate is disbanded
Bids are retained for 3 years
Stabilization Rules correct answers Only 1 MM
MM cannot maintain regular bid and offer while s...
Series 10 Exam 1 || with 100% Correct Answers.
Stabilizing Bids correct answers Entered at or below Public Offering Price
If current market exists, bid can't be higher then POP
Stops when the syndicate is disbanded
Bids are retained for 3 years
Stabilization Rules correct answers Only 1 MM
MM cannot maintain regular bid and offer while stabilizing
One sided quote - only bid (no ask)
Notify NASDAQ prior to the first day it will appear on the system
Designated as penalty or non-penalty
5% Policy (Guideline) correct answers Commissions and mark-ups must be resonable with 5%
being a guideline (not a rule)
Applies to all OTC and exchange traded securities
Does not apply to UITs, mutual funds, exempt securities, and IPOs
Rule 144 (holders of restricted stock) correct answers Can sell publicly if:
Issuer has gone public and has registered shares outstanding
Seller fills out form 144 every 90 days
Max sale = 1%
If securities are already in the market then ok to buy
Coupon Securities correct answers Must be delivered with all coupons
Unpaid coupons must be delivered
Can replace current coupon with bank draft if 30 days or less prior to interest payment date
If regular way = then 2 days before you get the interest if selling or in cash on the day of sell
NASDAQ Singlebook correct answers Automated execution of NASDAQ trades and central
limit book order
Automated trading platform for NASDAQ
Orders for both round and odd lots
Inside Market correct answers Highest bid and lowest ask
The prices at which the trades would take place
NASDAQ level 1 gives the inside market
Commissions and mark-ups correct answers Brokers earn commissions - agency
Dealers earn mark-ups - principal (mark-up is disclosed only if it is a NASDAQ security
G-25 correct answers (Improper use of assets) Cannot guarantee a customer against loss but can
enter into a repurchase agreement in exempt securities
Can recommend the purchase of put options as long as they dont say it is a guarantee against loss
Repurchase must be unconditional
, Good Delivery correct answers Most issues are in Book Entry Form so no physical delivery
For older issues:
Must have delivery ticket
Muist have a cusip
Partial deliveries are not good and can be rejected
Mutilated Certificate correct answers Can be accepted if:
It has a validation letter from the Transfer Agent, Trustee, Issuer, or paying agent
Good delivery (coupons) correct answers all coupons attached
unpaid attached if defaulted
customer can take coupon if it is last day to trade (2 days in reg way)
Coupon can be replaced by bank draft
Fingerprinted correct answers These people do not have to be fingerprinted:
people not engaged in the sale of securities
people who cannot access cash, securities, or accounting records
Those who are responsible for the above-mentioned
Fair Disclosure correct answers Deals with insider trading
Any disclosure of non-public information to financial professionals or holders of the security has
to be made public before being talked about
If unintentional and not public then 8k filled out with 24 hours
G-19 correct answers Discretionary accounts:
Customer has to have provided written trading authorization
Each transaction must be determined to be suitable
Order tickets must be reviewed promptly (within 24 hours)
Negotiated Underwriting correct answers Mostly for Revenue Bonds
Issuer selects underwriter based on past performance
Final Offering Statement has to must be obtained and reviewed before purchasing
Competitive Bid correct answers Issuer uses a financial advisor to help structure the bond
lowest net interest wins the bid
Open-End Management Companies correct answers Mutual Funds
Only issues common shares
New Money is issued additional shares
shares are non-negotiable but redeemable
Purchaser must have current prospectus
Closed-End Management companies correct answers One time issuance of stock
Negotiable
Listed like regular stock on exchanges
Non-redeemable but negotiable
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller FullyFocus. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.59. You're not tied to anything after your purchase.
