Testing your knowledge chapter 5

which of the following agreements specify that any unsold securities are retained by the underwriters?

I. Firm commitment

II. All-or-none

III. best efforts

IV. Mini-Max

I. only

Which of the following are exempt transactions?

I. Private Placements

II. Securities Issued by the U.S. Government

III. Intrastate offerings

IV. Commercial paper

I, II, III, and IV.

The Trading volume for BBB Corporation for the previous five weeks is as follows:

March 31: 50,000 Shares

March 24: 38,000 Shares

March 17: 44,000 Shares

March 10: 40,000 Shares

March 3: 42,000 Shares

BBB Corporation is listed on an exchange and has 4.2 million shares outstanding. What is the maximum number of shares an insider can sell under rule 144 on April 4 of the following year.

43,000

Bullbear broker -Dealer is managing an IPO that won’t be on the NYSE, Nasdaq, or any exchange. How long after the effective date much Bullbear provide a final prospectus to all purchasers of the security?

90 Days

a preliminary prospectus would include which of the following?

I. An SEC disclaimer

II. The names of the officers of the issuing corporation

III. The Public offering price

IV. an explanation of what the funds raised by the offering would be used for

I, II, and IV.

Which federal law regulates the initial sale of stock to the public?

securities Act of 1933

which of the following may be included in a tombstone advertisement?

All of the above

The post-filling cooling -off period usually lasts about

20 days

At what point is a broker - dealer allowed to accept payment for a new issue?

Once the registration is effective

All of the following securities are exempt from registration under the securities act of 1933 EXCEPT

ADRs