Exercise
Answer the following questions
- 1. Pick the correct order in which syndicate orders will be honored if a municipal offering is oversubscribed.
- A. Presale, designated, group, member
- B. Designated, member, presale, group
- C. Group, designated, member, presale
- D. Presale, group, designated, member
- 2. The MSRB operates EMMA, which:
- A. Requires issuers to submit new issue information for use by other market participants
- B. Requires underwriters to submit municipal security information, including official disclosure documents, for use by the general public
- C. Serves as an electronic database to provide information to regulators
- D. Serves as a securities depository where securities are deposited and held for ease of transfer between owners
Answers
- 1. D. Pre-sale orders go first. Next come Syndicate orders (also called Group orders) credited to the group. Next are orders Designated to a particular syndicate member. Last are Member orde