Series 10- New Issues/Trading Markets

The Consolidated Quotations Service is open from:

9:00 AM to 6:30 PM Eastern Standard Time

The regular hours of operation of the NASDAQ system are:

9:30 AM - 4:00 PM ET

Which of the following satisfy Rule 144 holding period requirements?

An affiliate selling control stock held for 3 months A non-affiliate selling restricted stock held over 6 months

In which of the following circumstances is reclamation available?

A bearer bond is returned because coupons are missing

∀A customer buys a 6-month T-Bill with a 1% coupon on Monday, September 9th in a regular way trade and sells it on Monday, September 16th in a regular way trade. The number of days of accrued interest due is:

0 because these do not make periodic interest payments.

In a regular way trade not compared through ACT, the last time to send a "DK" notice is:

1 business day after trade date ACT are compared same day with DKs 20 minutes within report

A covered security under Rule 101 of Regulation M can be subject to a restricted period of:

1 business day or 5 business days Tier 1- Large securities (no restrictions) Tier 2- Medium (1 BD) Tier 3- Small Issues (5 BD)

Any of the following tests can be used by an issuer to meet Rule 147's residency test requirement:

100% of the purchasers of an intrastate issue must be state residents. The issuer must also be "resident" in the state. To be "resident," the issuer must meet any one of the following tests: - 80% of the assets of the issuer are located in the state. - 80% of the gross revenue of the issuer is derived in the state. - 80% of the proceeds of the offering will be used in the state. - A majority of the issuer's employees are based in the state.

Records of all orders entered on the floor of the NYSE must be maintained for:

3 years, with the preceding 2 years' records kept readily accessible

Under Rule 144, no filing is required if the sale amount every 90 days does not exceed:

5,000 shares nor more than $50,000 for both restricted or control stock

A copy of the Form 13D must be sent to all of the following:

Board of Directors of the company Exchange where the company is listed Securities and Exchange Commission Except Shareholders of the company

A floor broker on the NYSE would be permitted to initiate which one of the following transactions?

Bona-fide arbitrage transaction Per Rule 11a-1 of the Securities Exchange Act of 1934 they cannot make: Bona-fide arbitrage transaction Principal transaction in a security admitted to trading Discretionary transaction

The NASDAQ System displays and executes orders for:

Global Market issues Capital Market issues OTCBB and Pink Sheet issues cannot be traded in the System.

Form 144 for selling stock

Greater of: average of the last 4 weeks or 1% of the outstanding shares

Which of the following activities are allowed prior to the filing of the registration statement?

I Sending a customer a "red herring" preliminary prospectus II Accepting an indication of interest from the customer III Accepting a deposit from the customer IV Accepting a firm order from the customer None of the above....

A broker-dealer is a member of an underwriting syndicate handling an offering of ABC common stock. The broker-dealer is permitted to recommend the purchase of ABC common stock during the underwriting period if the:

I firm has distributed the recommendation with reasonable regularity in the normal course of business II publication contains similar recommendations with respect to a substantial number of companies III recommendation is given no more prominence than other recommendations IV recommendation is no more favorable than it ever was

Rule 415

Secondary distribution Unseasoned reporting issuer filing a securities registration Rule 415 was the first "shelf registration" rule. It can only be used by "seasoned issuers" that have already completed their initial public offering. Thus, it is used for secondary offerings by seasoned issuers. It is not used for private placements, since these are not SEC registered. There are certain issuers that are "ineligible" to use either Rule 415 or Rule 405 shelf registrations (such as mutual funds). A "fine point" of Rule 415 is that even though only seasoned issuers can use the rule for shelf registrations of "primary offerings" (where the proceeds go to the issuer); both seasoned and unseasoned issuers can use the shelf registration rule to register resales of securities for selling security holders (a secondary offering where the proceeds go to the selling shareholders).

Which statement is TRUE regarding the distribution of a "new" common stock issue?

The member firm may hold part of the issue in its investment account if the underwriting is undersubscribed

A registered representative has prepared a research report about a new stock issue that is currently in registration and wishes to send the report to customers. Which statement is TRUE?

The report constitutes an "offer" under the '33 Act and cannot be sent

The Specialist/DMM performs all the following functions:

Trades for his own account executes orders for other brokers executes odd lot orders Except participates in new issue syndicates

A company declares a reverse 1:10 stock split. As of the ex-date for the split, all orders for NASDAQ:

are canceled Reverse stock splits are rare event, where a company is attempting to raise its stock price in the market (usually to avoid being delisted by the exchange because its market price is too low). Because reverse splits are so rare, the exchanges do not want to pay for the programming costs of supporting these events. Thus, as of the ex date, all orders are canceled and new orders must be entered. Note, in contrast, that the orders below the market are adjusted for cash dividends (since they are the ones that could be impacted by the cash dividend reduction on ex date); and all orders, both below and above the market, are adjusted for stock splits and stock dividends.

A due bill is required for transactions that:

are effected before the ex- date settle after the record date are used to claim payments that are made to the wrong individual. If a person buys a security before ex-date, he qualified for a distribution from the issuer. If the trade settles after record date, he will not be on the issuer's books to receive that distribution. He can claim the distribution with a "due bill."

FINRA requires members to report "short interest" levels:

bi-monthly

The threshold list must be checked:

daily

When a DMM Stops the stock, he:

guarantees to fill the order at the price or better

A person that makes an offer of securities while that issue is in registration with the SEC is:

gun jumping During the 20 day cooling off period, the security being registered cannot be offered, sold or recommended. If this is done, that person is "jumping the gun." The issue can only be offered, sold or recommended once registration is effective.

The inside market is the:

highest bid and lowest ask.

The term "offering at the market" is defined as an offering:

made at a price other than a fixed price is one made at a price determined by existing market conditions - there is no preset Public Offering Price. This is only done when there is an independent trading market that exists in that security, meaning it is an add-on offering.

Under the Securities Act of 1933, a non-exempt issue must be registered if the:

mails or other means of interstate commerce are used to offer the security

All of the following holdings of restricted Rule 144 shares are subject to the 6-month holding period requirement

received as a gift from a donor donated to a trust for a beneficiary pledged to a lender and transferred to the lender after default on the loan Except transferred to the estate of a person since deceased

Valid reasons for withdrawal of quotes by a registered market maker from the NASDAQ system include all of the following:

vacations legal requirements legal holidays Except pending news announcements