Review Quiz

1. 1. Which of the following are types of “best efforts” underwriting when issuing securities?
2. I. green shoe
3. II. all or none
4. III. sell the whole
5. IV. mini-max
6. A. I, II and III
7. B. I and II
8. C. I and IV
9. D. II and IV
10. 2. Who receives the proceeds of a registered secondary offering?
11. A. stockholder
12. B. corporation
13. C. management
14. D. underwriter
15. 3. An investor wishes to invest in the stock of a large, well-established company. The investor should purchase shares of a:
16. A. limited partnership
17. B. LLC
18. C. S-corporation
19. D. C-corp
20. 4. A well-known seasoned issuer would like to undertake a shelf offering. How long can the issuer sell limited portions of the stock without filing an S-3 registration?
21. A. two years
22. B. three years
23. C. five years
24. D. until the last portion of the original issue is sold
25. 5. As part of its registration statement, an underwriter sends a preliminary prospectus to the SEC. A preliminary prospectus is:
26. A. an S1 form
27. B. a tombstone ad
28. C. an underwriter’s disclosure
29. D. a red herring
30. 6. The gross profit or underwriting spread in an equity securities issue is composed of:
31. I. the coupon
32. II. the concession
33. III. the managing underwriter’s fee
34. IV. the underwriting fee
35. A. I, III and IV
36. B. I, II and IV
37. C. II, III and IV
38. D. I, II, III and IV
39. 7. A U.S. engineer has invented a promising new technology and a group of Swiss investors wants to invest in the S-corp he has formed to commercialize his technology. If each investor wants to invest $100,000, how many in this group may invest in this tech startup?
40. A. 100
41. B. 499
42. C. unlimited
43. D. 0
44. 8. Which type of issuer is generally associated with the Form S-3 registration statement?
45. A. a foreign issuer
46. B. a well-known seasoned issuer
47. C. a well-known super issuer
48. D. an investment company
49. 9. Under FINRA Rule 11880, when must syn