Unit 5 - Test Prep

Question 1

An offering in which one ore more major stockholders in the corporation are selling all or a major portion of their holdings is called

Answer 1

a secondary offering

Question 2

All of the below securities would be exempt from a filing with the Corporate Financing Department

Answer 2

1. unit investment trusts
2. private placements
3. closed end funds

Question 3

The prospectus delivery requirement for an additional public offering of an exchanged listed stock is

Answer 3

0 days

Question 4

Which of the following is true regarding FINRA Rule 5130?

Answer 4

A representative’s aunt is not a restricted person

Question 5

A Regulation D, 506(b), private placement offering

Answer 5

can use an online questionnaire to qualify prospects.

Question 6

Reserch reports must disclose

Answer 6

1. date and price of the security at the time of publication
2. if the firm has 1% or more position in the security

Question 7

Under SEC Rule 10b-13, a target company has how many business days to provide shareholder with a statement regarding acceptance, rejection, or no opinion?

Answer 7

20

Question 8

Rule 144 deals with the sale of

Answer 8

1. legend certs
2. control stock
3. restricted securities
4. securities received from other than a public offering