SIE Unit 1 - Lesson 1.1

IPO for listed or Nasdaq delivery rule is?

25 days

What is the maximum number of nonaccredited investors allowed in a Regulation D exempt transaction under Rule 506(b)?

35

APO for non-Nasdaq

40 day

For nonlisted and non-Nasdaq securities, a prospectus must be provided to all those who purchase securities as part of an APO for how many days after the effective date?

40 days

a natural person who has a net worth of $1 million or more, not including net equity in a primary residence

40 days.

A municipal advisor does what?

Advises municipalities on selling securities

T or F: Securities offerings up to $75 million in a 12-month period are allowed in Tier 2.

T

What act requires the registration of most new issues?

The Securities Act of 1933

A private securities transaction

is exempt from registration under the Act of 1933. can be sold to individual accredited investors.

The statement "These securities have not been approved or disapproved nor have any representations been made about the accuracy or the adequacy of the information" is

mandated to be in the final prospectus by the Securities and Exchange Commission (SEC).

In an underwriting where fixing a minimum dollar amount to be sold in order to move forward with the entire offering is most commonly referred to as

mini-max.

APO for listed or Nasdaq delivery rule is?

none

Issuers wanting relief (exemption) from the registration provisions of the Securities Act of 1933 can offer securities

privately

The primary market is where

securities are sold to the investing public by the issuer wishing to raise capital

The access equals delivery rule applies to

the final prospectus and aftermarket delivery obligations.

In an AON underwriting,

the issuing company has determined that it wants the underwriter to sell all of the shares required to raise all of the capital needed or cancel the underwriting

Securities regulations that are called blue-sky laws refer to those at

the state level.

IPO for non-Nasdaq delivery rule is?

90 days

The preliminary prospectus for the IPO of the Big Shoes Sneaker Company indicates that the number of shares sold may be increased as much as 15% if market demand is sufficient. This is called a

Green Shoe option

An official statement is a disclosure document that would be used in connection with an offering of which of the following securities?

Municipal bonds

An accredited investor is what?

a natural person who has a net worth of $1 million or more, not including net equity in a primary residence

A select pair or group of companies organized to underwrite corporate or municipal securities is best known as

a syndicate

A corporation sells shares to the investing public in order to raise capital. This is known as

an issuer transaction.

Underwriters are

broker-dealers who help issuers bring their securities to market in the primary market

Market makers are

broker-dealers who sell out of their own account in the secondary market

During the cooling-off period, underwriters may not

distribute sales literature or advertising material.

Private placements are primarily sold to

institutional investors.