Second Greenlight Flashcards
The CEO of a broker-dealer wants to manage a few brokerage accounts. Which of the following persons would BEST be able to supervise the CEO and his sales practices?
The compliance director of the broker-dealer
Under industry rules, in which of the following offerings may a restricted person make a purchase?
Securities that are not considered new issues and can be sold include:
Secondary offerings
All debt offerings, including convertible and non-investment-grade debt
Private offerings, including securities sold pursuant to Regulations D and 144A, and
Preferred stock offerings.
Who may not purchase new issues (restricted persons)
BD/UW officer or director
BD/UW RR
RR and Family members: Use the cross
Spouse/siblings (equal)
Parents/In-laws (up)
children (down)
ANYONE materially supported by EE of firm (BD/UW)
Who may purchase new issues?
Officer of ISSUER
EE of ISSUER
Who is bound by industry rules when opening an account with another member?
RR, their spouse and minor children
EE of firm with control AND contributes material support
In order to open a new account for a corporation, which of the following is required?
A corporate resolution signed by an authorized corporate officer
Resolution lists who’s approved enter orders on behalf of the corporation
What does signing an investment letter in a private placement mean?
What ensures no premature resales of Reg D securities?
Investor agrees to the 6 month holding period and not reselling
stop-transfer instructions for the transfer agent
If the underwriter of a best-efforts deal fails to sell the entire offering, what will any client who purchased the securities receive?
Securities from the offering.
If a min-max best-efforts and min amt not met, all client funds returned
