Regulations Flashcards
506(c)
Reg D
Advertising is permitted when
The issue is limited to accredited investors
Sec rule 10b-13
Make a tender offer provide shareholders statement with acceptance or rejection
How many business days?
10 business days
Think of it being 10 days cause of number of ppl that need to respond 10 days is enough to respond 5 days too little
Sec regulation Best Interest (BI)
Focuses on
Recommendations to customers
FINRA Rule 2330 members responsibility in the sale of certain insurance company based products
Specifically the concern
Purchases and sales of deferred variable annuities
Regulation FD covers
The selective disclosure of material non public information by issuers
Rule ensures that all investors receive equal access to a company’s material disclosures at the same time
Within a firm commitment underwriting which document details the responsibilities and liabilities of each firm ?
Agreement among underwriting’s
Aka syndicate letter
Collateral trust certificate
Is a non-exempt security
Bankers acceptance and commercial paper are they exempt ?
Yes as long as they do t exceeed 270 days
Is a fixed annuity an exempt issue ?
Yes, because it is considered an insurance product
Is a variable annuity non-exempt?
Yes, because the investor bears the risk so they need to be registered
Is an ADR a non exempt security ?
Yes, it is non exempt and must be registered with SEC and initially sold with a Prospectus
Firm 144 selling restricted stock
Responsibility of seller
Filled at, or prior to the time that the sell order is placed
10k report filed have to include
Income statement
Balance sheet
Retained earnings statement
Is an announcement of a new issue offering that is being registered with the SEC?
Tombstone announcement
A security which was never registered and can only be sold in the public markets when it is either registered, or sold under an exemption provision
Restricted stock
