Series 7 - Chapter 1
Which of the following would be defined as a research report?
A document that states the banking industry is ready for recovery but ABC Bank will not participate in the recovery and if owned, investors should hold the security
Which of the following forms of written communication must a principal approve before use?
A letter sent this month to 50 prospective customers offering advice about a stock
The Securities and Exchange Commission regulates all of the following EXCEPT
intrastate securities offerings
All of the following are exempt securities EXCEPT
municipal bond funds
A customer asks for sales literature for a money market mutual fund. Upon receiving the literature she notices
the fund seeks to maintain a stable price but that the fund can lose money
If an investment representative hosts an investment seminar and intends to discuss general investment concepts and a specific mutual fund for which he has performance charts, which of the following are TRUE?
He may discuss the investment returns of the mutual fund using a specific time frame. He must disclose all material facts regarding the mutual fund to the audience.
Under the rules on communication with the public, review of which of the following by a principal may take place either before or after distribution?
Correspondence to 25 or fewer retail investors within any 30-calendar-day period
To be designated as an accredited investor under Regulation D, a married couple investing in a joint account must have income of at least
$300,000
The ABC Corporation would like to raise capital via a Regulation D private placement. Regulation D is the private placement exemption from registering with the SEC. Rule 506(c) of the Regulation states that advertising is
allowed if the offering is limited solely to accredited investors.
A generic ad for an investment company placed by a broker-dealer would contain
the name of the broker-dealer placing the ad, but not the name of the investment company
The primary difference between an underwriting syndicate member and a selling group member in a firm commitment underwriting is that
the syndicate assumes liability for unsold shares; the selling group does not
Under which of the following terms does the underwriter act in a dealer capacity?
Firm commitment
TCB wants to offer $75 million worth of common stock in its home state. It will not register at the federal level. What type of registration will TCB use to register with the state?
Qualification
Which of the following exemption provisions of the Act of 1933 may not be used for an initial offering of securities?
Rule 144
A registered representative places an ad in her church newsletter promoting her services as an expert retirement planner. Does this advertisement need to be pre-approved by a principal?
Yes, the ad will be defined as retail communication requiring pre-approval of a principal.