Corporate Underwritings

A corporation wishes to raise capital by issuing common stock to the public. The corporation would select which of the following to advise them on the stock issuance? a. investment adviser b. investment banker c. broker dealer d. registered representative

b. investment banker.

The management of a publicly held company wishes to take the company "private" by making a tender offer for all of the company's outstanding shares; with financing for the purchase to be provided by a commercial bank. This is known as a: a. hostile takeover b. leveraged buy out c. merger d. managed underwriting

b. leveraged buy out.

A preliminary prospectus may first be sent to a customer: a. prior to the filing of a registration statement with the SEC b. once the registration statement has been filed with the SEC c. once a final price amendment has been filed with the SEC d. once registration is effective

b. once the registration statement has been filed with the SEC.

In a firm commitment underwriting, the underwriter is acting as a(n): a. agent b. principal c. intermediary d. specialist (DMM)

b. principal.

An underwriting commitment where the underwriter is not liable for any unsold securities is a(n): I. firm commitment underwriting II. best efforts underwriting III. agency relationship IV. principal relationship a. I and III b. I and IV c. II and III d. II and IV

c. II and III.

Responsibility for printing and delivering stock certificates in a new issue offering rests with the: a. registrar b. transfer agent c. issuer d. managing underwriter

c. issuer.

Which of the following CANNOT be a stabilizing bid for a new issue that has a Public Offering Price of $20 per share? a. $19.00 b. $19.88 c. $20.00 d. $20.15

d. $20.15.

Immediate family members of employees of member firms that are prohibited from buying new issue offerings under FINRA's IPO rules include: I. spouses of member firm employees II. siblings of member firm employees III. parents of member firm employees IV. children of member firm employees a. I and II only b. III and IV only c. I, II, and IV d. I, II, III, IV

d. I, II, III, IV.

All of the following activities are prohibited during the "cooling off" period EXCEPT: a. accepting an order for the issue in registration b. confirming a certain amount of the issue to a customer c. accepting a check from a customer for the part of the issue d. accepting an indication of interest from the customer for part of the issue

d. accepting an indication of interest from the customer for part of the issue.

The underwriter is responsible for which of the following in a new corporate offering? a. printing of the prospectus b. printing of the certificates c. registration of the securities and exchange commission d. selling the securities to the investment community

d. selling the securities to the investment community.