Unit 1

Question 1

NIC

Answer 1

Net interest cost
Combines the amount of proceeds the issuer receives with the total coupon interest it pays

Question 2

TIC

Answer 2

True interest cost
Adjust for the time value of money

Question 3

1 point

Answer 3

$10

Question 4

Reallowance

Answer 4

Generally half the concession amount
P12

Question 5

BDC

Answer 5

Business development company
Excluded from Reg A

Question 6

Spinning

Answer 6

Allocating highly sought-after IPO shares to individuals who are in a position to direct securities business to the firm
P27

Question 7

Spoofing

Answer 7

entering orders to purchase or sell stock but canceling the orders before they are executed
P27

Question 8

Stabilizing

Answer 8

Bidding at or below the public offering price of a new issue security. Underwriting managers may enter stabilizing bids during the offering period to prevent the price from dropping sharply.
See also fixing, pegging

Question 9

Market-out clause

Answer 9

The standard provision of a firm commitment underwriting agreement that relieves the underwriter of its obligation to underwrite the issue under circumstances that impair the investment quality of the securities

Question 10

de minimis exemption, Rule 144

Answer 10

5,000 or fewer shares
$50,000 or less
Sales in any 90-day period
No need to file Form 144

Question 11

Writing the scale

Answer 11

A list of the bond issues different maturities
Assigned with a yield, or assigned with a coupon
p9