Test series 7 Flashcards
pt 7
<p>Securities Act of 1933 consists of:</p>
<p>#NAME?</p>
pt 7
<p>Securities Act of 1934</p>
<p>Regulates the secondary market</p>
pt 7
<p>What is an SRO?</p>
<p>Self-Regulatory Organization</p>
pt 7
<p>Name SRO's.</p>
<p>#NAME?</p>
pt 7
<p>Options cannot be bought on?</p>
<p>Margin</p>
pt 7
<p>What occurs during the pre-registration period?</p>
<p>#NAME?</p>
pt 7
<p>What is shelf-registration rule 145?</p>
<p>Allows the flexibility of selling on delayed or continuos basis for up to 3 years [max shelf life]</p>
pt 7
<p>What is the green shoe clause?</p>
<p>#NAME?</p>
pt 7
<p>What is pegging?</p>
<p>Preventing stock from falling.</p>
pt 7
<p>What is the NASD rule 2790?</p>
<p>Prohibits member firms from selling equity ipo's to account in which a restricted person has a beneficial interest.</p>
pt 7
<p>Who is considered restricted?</p>
<p>* NASD member firms and their employees.</p>
pt 7
<p>What is an exempt account?</p>
<p>- Account where the combined ownership of all restricted persons represents 10% or less.</p>
pt 7
<p>What are exempt securities?</p>
<p>- US gov't and agency secs.</p>
pt 7
<p>What is Rule 147?</p>
<p>Intrastate exemption</p>
pt 7
<p>What is the formula for Option premium?</p>
<p>Intrinsic value + time value</p>
