Series 24: Review Quiz

Review Quiz

1. 1. Company XYZ has been de-listed from the Nasdaq and does not qualify for a nationally listed exchange. Which of the following is required in order for a member to be permitted to quote XYZ on the OTCBB?
2. A. The company must undergo an “examination period” by the OTCBB with a minimum 90-day waiting period
3. B. The company must file current financial statements with the SEC
4. C. The company must have a minimum trading volume as set by the OTCBB
5. D. There are no eligibility requirements to be listed on the OTCBB
6. 2. Which of the following statements is not true of the Pink Sheets?
7. A. Pink Sheet companies are not required to meet financial listing requirements
8. B. Pink Sheet companies tend to be small and thinly traded
9. C. Pink Sheet companies must register with FINRA to be listed
10. D. Pink Sheet companies do not file periodic reports with the SEC
11. 3. Before a broker-dealer can sell a penny stock, SEC rules require the firm to:
12. A. provide the customer with the penny stock company’s last financial statement
13. B. furnish the customer a document describing the risks of investing in penny stocks
14. C. receive approval from FINRA for the sale
15. D. mark the buy order with the notation “p