Series 24: Answers

Answers

1. 1. Answer: B. Rationale: The preparer is not expected to deliver a fairness report without being paid, but FINRA does want the opinion to disclose whether any such compensation is contingent on the successful completion of the merger.
2. 2. Answer: D. Rationale: Form S-4 is the registration form for securities in connection with mergers and acquisitions.
3. 3. Answer: A. Rationale: A tender offer is a sign that an investor may be attempting to acquire stock to take over the company. The tender offer price is typically above the value of the stock on the secondary market. The SEC requires reporting of tender offers of more than 5% of a company.
4. 4. Answer: B. Rationale: Congress passed the Hart-Scott-Rodino (HSR) Act in 1976 to