New Issues / Trading Markets Flashcards
trades for cash settle in how many days?
settle same day
A short sale of 144 securities that are included in the threshold list where there is a fail to deliver on settlement must be closed out in:
35 days
A short sale of 144 securities that are included in the threshold list where there is a fail to deliver on settlement must be closed out in:
what is on the confirmation for a When, As and If Issued trade?
whether the trade was performed by the firm as agent or dealer. Settlement, interest, amount of order are all unknow
if a underwriter wants to stabilize a new issue what must they do?
a notice of stabilization must appear in the prospectus given to all purchasers of the issue
A broker-dealer outside the underwriting group that sells short the outstanding shares of a company over-the-counter during the 5 business day period prior to the effective date of another issue of common stock, what can they NOT do to cover the short?
buying shares from underwriters
Anyone who accumulates a 5% or greater equity holding in a registered security must file a Form:
13 D
market-not held order
where a trader uses his or her best judgment decide when to execute to get the best price
Clearly Erroneous Execution (“CEE”)
is an execution with an obvious error in any term,
such as price, number of shares or other unit of trading, or identification of the security. these must be reported in 30 min from execution.
Don’t Know (DK) Notice
A DK Notice is basically a note sent by a clearinghouse to the broker to say “hold up, something went wrong.” It’s sent when a broker makes a buy but the clearinghouse can’t find the sale that matches up. It can happen due to typos or inaccurate trade symbols or other mistakes.
if not done though the ACT system you have one business day form trade date to notify. if done though ACT you have 20 min.
Rule 415
the first “shelf registration” rule. It can only be used by “seasoned issuers” that have already completed their initial public offering. Thus, it is used for secondary offerings by seasoned issuers. It is not used for private placements, since these are not SEC registered. There are certain issuers that are “ineligible” to use either Rule 415 or Rule 405 shelf registrations (such as mutual funds). A “fine point” of Rule 415 is that even though only seasoned issuers can use the rule for shelf registrations of “primary offerings” (where the proceeds go to the issuer); both seasoned and unseasoned issuers can use the shelf registration rule to register resales of securities for selling security holders (a secondary offering where the proceeds go to the selling shareholders).
how does Interest accrue on a corporate bond?
Interest accrues on a 30 day month/360 day year for corporate bonds
Disclosure of mark-ups or commissions is required for
I Riskless or simultaneous trades
II Agency transactions
III Principal transactions in NASDAQ stocks
WKSI
Well know seasoned issuer
To be a WKSI under SEC Rule 405, the issuer must have a market capitalization of at least
700 million
The Consolidated Quotations Service (CQS) shows bid and ask quotes for stocks listed on the
I New York Stock Exchange
II Midwest Stock Exchange
III Boston Stock Exchange
IV Philadelphia Stock Exchange
CQS shows quotes for all stocks listed on the NYSE and dual listings of securities that are traded on the regional exchanges. CQS does not include NASDAQ listings.
