Series 24: Answers

Answers

1. 1. Answer: C. Rationale: Once the underwriter and issuer file registration papers for a security under the Securities Act of 1933, a “cooling off” period begins. During this period, neither the issuer nor the underwriter can sell any of the securities. Therefore, Blazing Investment Bankers cannot sell securities during the cooling-off period, regardless of whether an investor initiates an inquiry or not. In addition, neither the issuer nor the underwriter can advertise the securities. Therefore, Caty’s Computers cannot advertise, regardless of where the advertisement is placed. It is allowable for the issuer or underwriter to publish a tombsto