Business for the BD Flashcards
Correspondence
25 or fewer retail persons - Principal can approve pre- or post-distribution
Retail Communication (Sales Literature)
More than 25 retail persons - required Principal approval pre-distribution
OCC Disclosure Document (ODD)
Options Clearance Corporation - required WITHIN 15 DAYS of account APPROVAL
Advertisements for Derivaties
Approval required 10 DAYS PRIOR to first use
Cooling Off Period
“Quiet Time” - minimum of 20 days, not allowed to comment
What can you do during the Cooling Off Period
Send out a Preliminary Prospectus, Indications of Interest (IOI), and Tombstone
What is another name for a Preliminary Prospectus?
Red Herring
What is the difference between a Preliminary Prospectus and a Final Prospectus?
A Red Herring does not contain the final offering price
True of False: Indications of Interests (IOIs) are non-binding on some parties
False: Non-binding on ALL parties
Tombstone
Advertisement that discloses NO BUYING/SELLING - able to post during Cooling Off Period
Underwriting Agreement
Agreement between Issuer (Corp) and Underwriters (BD Firms)
Selling Group Agreement
Agreement between Underwriters (BD Firms) and their Selling Group Members (Clients)
True or False: Selling Group Members are never liable for unsold securities
True
What are the different types to Blue Sky with your State Administrator?
Coordination, Qualification, and Notification
Notice of Sale
Published in the Daily Bond Buyer - applicable for Municipal Bonds