SIE
An institution or a person responsible for making all investment, management, and distribution decisions in an account maintained in the best interest of another who has been legally appointed to provide these services is best described as
a trustee
Some issuers issue securities in electronic form, while some securities have been issued in physical form. Which of the following statements are true in relation to electronic or physical form?
all us government securities are issues in book entry form
Long positition
buy to open, sell to close
All of the following are market centers within the secondary market except
capital
Regular way settlement for common stock is
trade date plus 2 business days.
in 2016, RST Corporation had both common stock and $100 par value 4% noncumulative preferred stock outstanding. The preferred, like the common stock, pays dividends on a quarterly basis. Because of financial difficulties, the company stopped paying dividends after 2016. After resolving its problems in 2020, the company resumed dividend payments in 2021. Before paying the first quarterly common stock dividend that year, the company would have to pay a quarterly dividend to the preferred stockholders of
$1
LMN Corporation has a $60 par, 4% preferred stock currently trading at $45 per share. Its annual dividend is
$2.40
The current quote for PQR inc common stock is bid 42, ask 42.10, 4 x 5. A customer who places an order to buy 200 shares at the market will likely pay how much for the purchase
$8,420
Regarding preferred stock, all of the following are true except: - The right to vote on corporate issues is not available for preferred shareholders - Preferred shareholders have no preemptive rights that precede the preemptive rights of common shareholders - Preferred shareholders are paid before common shareholders in the event of a corporate bankruptcy - A corporation issuing common shares must issue at least one class of preferred shares
- A corporation issuing common shares must issue at least one class of preferred shares
Which of the following best describes and M&A and spin off? 1. M&A is when one company merges with or acquires another company 2. A spin off is when one company divests itself of one of its divisions or subsidiaries 3. M&A is when one company does both the accounting and management for another company 4. Spin off is when a company's debt spins out of control
1 and 2
An investor owning 500 shares of MES stock received notice that the stock had undergone a 2:1 forward split when the stock's market price was $10 per share. The investor now owns
1,000 shares worth $5 per share
Penny stock rules 1. apply to both solicited and unsolicited transactions 2. specify that established customers of the firm need not sign a suitability statement 3. mandate that an account holding penny stocks only need not be provided with a monthly statement 4. require that prospects be given a copy of a risk disclosure document before their initial penny stock transaction
2 and 4
An investor owns 200 shares of MNO common stock. The company's management has proposed a 2:1 stock split. If the price of the stock at the time of the split is $50, what would the investor's adjusted position be?
400 shares at $25
A client entering a sell limit order at 43 would accept which of these trades
44
Cypress Care Nurseries, Inc., owns and operates a chain of nurseries and is headquartered in Cypress, California. The company is considering selling shares of the company to the public in California. In order to be exempt from registration with the SEC, under Rule 147 it would need to meet several criteria. Which of these is not a listed criterion under Rule 147?
80% of the issuer's customers must be located in the state of California
Your customer owns 300 shares of BigCo, Inc., common stock. In the upcoming election there are three open board seats. If BigCo operates under a cumulative voting system, how many votes does the customer have in that vote?
900 votes that may be cast among the seats in any way they choose
Regarding preferred stock, which of the following is false?
A corporation issuing common shares must issue at least one class of preferred shares
A customer has held an account with a broker-dealer for over one year. A registered representative associated with the firm recommends the purchase of an unlisted security trading at $3.50. What documentation, if any, is required prior to the trade?
A disclosure statement is required, but not a suitability statement
Squidco, Inc., is issuing 100 million dollars in 4 ½% bonds maturing in 20 years. When purchased at issue, the buyers will receive an additional security that allows them to purchase 20 shares of Squidco common stock at $50 per share anytime in the next 10 years. Squidco common is currently trading at $29.95 a share. This is an example of A. a warrant. B. a stock right. C. a follow-on offering. D. a call.
A warrant
All of the following are exempt issuers except
Modulux, Inc., a home manufacturer.
Which of the following is not part of the secondary markets
Mutual fund market
For this election cycle, Big Trucks, Inc., has three open board seats. Big Trucks operates under a cumulative voting system. Your customer owns 300 participating preferred shares of Big Trucks. He has A. 900 votes he can divide anyway he wants among the three seats. B. no voting rights. C. 300 votes each for the open seats. D. 300 votes total to spread among the three open seats.
No voting rights
On august 20 of last year, when the stock was trading at $42, Seabird Airlines declared a 15% stock dividend, payable on Sept 15. On the close of trading, on the pay date, the stock was trading at $40. What would a customer who owned the stock all of last year report for tax purposes?
Nothing; there are no tax implications for a stock dividend
Which of the following are not requirements for corporate actions?
Notify the customer prior to the payment of the semiannual interest payment
Suppertime Restaurants Inc. declared a $2 per share dividend on Tuesday, September 13. The dividend will be paid to holder of record of BigBox common stock as of Tuesday September 27 and will be paid Wednesday October 12. What is the payable date for this dividend?
October 12
A corporation is issuing a bond with an interest rate below that which is commonly being offered for this type of bond. To improve the bond's marketability without reducing the capital to be obtained, which of the following actions might the corporation take?
Offer a warrant on the stock with each bond
American Liquidators Corporation (Ticker LQDT) has 100 million outstanding common shares. The company would like to raise capital by selling 100 million new shares. In order to accomplish, this they would A. offer warrants to existing shareholders. B. suggest that existing shareholders go to the market and double their existing position. C. offer stock rights to existing shareholders. D. perform a stock split.
Offer stock rights to existing shareholders
Which of the following securities provides US investors with a way to gain exposure to the common stock of a foreign issuer?
ADR
Which of the following is correct concerning the pricing of ADRs?
ADR pricing is dollar-based and fluctuates throughout the day
All of the following are true for ADRs except - ADRS are US issued securities - ADRS pay dividends in US dollars - ADRs are not subject to currency risk - ADRs represent a foreign security in the domestic market
ADRs are not subject to currency risk
Which of the following preferred stocks price would remain most stable in an environment of changing interest rates?
Adjustable rate preferred
Seacoast securities, a broker-dealer member firm, maintains an inventory of SFT common stock. The firm assists a customer with a purchase of SFT common stock and charges a commission for the service. Seacoast is acting in what capacity?
As a broker
Under penny stock rules, what is required for a broker-dealer to consider an investor an established customer?
At least three separate penny stock purchases
A potential customer asks about investing in a German car maker. You find that the company's stock trades on an exchange in Germany and has ADRs. What is the easiest way for the US-based customer to make this investment?
Purchase ADRs for the company that trade in the US markets
Which statement describes rights and warrants
Rights are short term; warrants are long term.
An investor needs to decide whether or not they would like to maintain their percentage of ownership in a company that has decided to increase the number of outstanding shares. Which of the following is the best description of what is taking place?
Rights will be distributed to existing stockholders with an exercise price lower than the current market value
MMS Corporation has 7% callable preferred shares outstanding. Over the past few years, benchmark interest rates have declined and hovered close to 3%. Which of the following is TRUE?
The 7% shares are likely to be called
Mr. Smith bought an ADR in a French company at $13.03 and recently sold the shares for $24.88. How would this trading profit be taxed?
The profit is taxed as a capital gain in the US only
Which of the following statements about warrants is false?
The warrant allows the holder to exercise to purchase the underlying stock at a price lower than the market price at the time of the warrant's issue
Your client hold ADR's of Daikon Motors, Inc., an automobile manufacturer based in Asia. All of the following are true about the position except - They will receive dividends in US dollars - The security may be traded in US markets - They have the same voting rights as an owner of the common stock - They have the right to request the underlying common shares be issued to them directly
They have the same voting rights as an owner of the common stock
Bigbox stores Inc declared a $1 per share dividend on Tuesday August 8. The dividend will be paid to holders of record of BigBox common stock as of Thursday August 30, and will be delivered to shareholders on Wednesday September 6. What is the record date for this dividend?
Thursday August 30
On Monday August 1, your customer purchased 10 treasury notes at a price of 99.5 that mature in three years. Cash to pay for the purchase must be delivered by what date
Tuesday August 2
Ron buys 522 shares of Narcissus Inc., common stock in a cash account on Monday, March 19. He deposits cash in the account sufficient to cover the trade on March 20. How soon would he be able to withdraw those shares?
Wednesday March 21
Your customer is quite nervous about the stock market but expresses his belief that equities are still the place to save for retirement over the long term. He places a trade for 500 shares of an equity index fund. Overall your customer is likely
a bull
A business entity that performs the function of receiving and delivering payments and securities on behalf of both parties to a securities transaction is called
a clearing agency
A broker-dealer that concentrated its business efforts on proprietary trading would most likely be functioning as
a market maker
ABC Broker-Dealer maintains an inventory of MMNO common stock. They transact purchases and sales with customers using this inventory. In this example, ABC is acting as what
a market maker
Modulux, Inc., a NYSE listed manufacturing company, was founded by Clarence Mod. Clarence is now 82 years old and is looking to divest his significant interest in Modulux to capitalize the Mod Family Foundation, a charity. He has enlisted the help of Seacoast Securities, a FINRA member broker-dealer based in Seattle, to run the sale. This is an example of
a secondary offering
Which of these broker-dealers would most likely have correspondent firms
a self-clearing firm
An investory who is an affiliate of XYZ Corporation holds shares of restricted XYZ stock. These shares have
a six-month holding period and are subject to volume limits for as long as the investor is an affiliate
Modulux, Inc., a NYSE listed manufacturer, is offering 5,000,000 shares to the public, which will raise capital to build a new plant. The new technology and design should allow Modulux to increase market share significantly in the modular home business. This offer is
an APO
Accredited investor
an organization or individual investor who meets certain criteria established by the SEC and so qualifies to invest in unregistered securities
A company that offers sales of another company's securities in a primary market transaction would best be described as
an underwriter
A penny stock is
an unlisted (not listed on a US stock exchange) security trading at less than $5 a share
A penny stock is best described as
an unlisted stock valued at less than $5 per share.
listed security
any security listed for trading on an exchange
An investor would expect which type of preferred stock to pay the highest stated dividend rate?
callable
Rule 144 imposes volume limitations on the number of shares that can be sold by
control persons selling registered stock held for one year, control persons selling restricted stock held for two years
Preferred shareholders who expect missed dividend payments to be eventually paid are most likely to own
cumulative preferred stock
Common dividends may be
declared, increased, reduced or suspended by the board of directors
Secondary markets exist to do all of these except
decrease liquidity in the national markets
MJS Corporation has called in its 6% preferred shares. Owners of these shares should expect that
dividend payments will cease on the call date
The primary purpose of ADRs is to facilitate the trading of
foreign stocks in US markets
An affiliate holding unregistered shares can sell under Rule 144
four times a year
Which of the following activities would be handled by a carrying firm and not an introducing firm
holding custody of a customer's securities
An investor is long 300 shares of MAS at 45. The stock has just undergone a 3:1 split. The investor's new position is
long 900 shares at 15
An individual invested in a company by purchasing 1,000 shares of common stock. The company has, unfortunately, gone bankrupt. This investor
may lose all that was invested but is not liable for any corporate debts that cannot be satisfied during the dissolution process
During the cooling off period the disclosure document that may be delivered to interested parties is called the
preliminary prospectus
The potential that inflation will devalue the fixed dividend income payments received by preferred shareholders is known as
purchasing power risk
Securities acquired through some means other than a registered public offering are known as
restricted
Both the individual and institutional investor are able to easily buy and sell securities to meet their objectives through
secondary markets
All of the following are taxable to the investor except
stock dividends
An order that when triggered becomes a limit order is called a
stop limit order
An order that when triggered becomes a market order is called a
stop order
Big Company, Inc., an NYSE listed manufacturer of large objects, has declared a 50-cent-per-share-dividend payable next month. Big Company also has options available for trade. The actual ex-dividend date will be declared by
the NYSE
A corporation seeking to raise funds in order to expand its manufacturing capacity would do so in
the capital market
Seacoast Securities is a syndicate member for the initial public offering of WeariTech, Inc., WeariTech is a hot new issue in the wearable technology space. The S-1 registration statement has been filed but the effective date has not yet been released. This is
the cooling-off period
A preemptive right for existing shareholders is best described as
the right to purchase shares in an amount that would keep a shareholder's proportionate ownership in the corporation unchanged when a company issues additional shares
A bearish sentiment means that a person believes
the security will decline in value
The rate on an adjustable preferred stock would most likely be indexed to
the treasury bill (t-bill) rate
A reason that a company based outside of the US may encourage the create of ADRs for their stock is
they offer easier access to US investors
Which of the following securities are exempt from the securities act of 1933?
treasury notes
to qualify as an exempt transaction under tier 1 of regulation A, an issuer may offer a max of which of the following
up to 20 million in securities in a 12 month period
A significant risk of investing in common stocks is
volatility in share prices
Interest-rate sensitivity for preferred shareholders should be understood to mean that
when interest rates rise, the prices for preferred shares can fall
Narcissus, Inc., a social media company, has shares selling at $50. Your customer is bearish. He would like to sell the stock short, but not until it retreats at least 10% from its current price. In order to catch the drop he could
Buy limit at 50
All else being equal, which of the following preferred would pay the highest dividend?
Callable preferred
Which of the following is a taxable event for an investor when it occurs? - Stock dividend distribution - Cash dividend distribution - Forward split - Reverse split
Cash dividend distribution
Which of these would most likely require shareholder approval?
Changing the corporation's name
An example of a fixed-income security would include all of the following except:
Common stock that has historically paid dividends
Under Rule 144, which of the following sales are subject to volume limitations on the number of shares sold? - Control person selling registered stock held for one year - Control person selling restricted stock held for two years - Nonaffiliate selling registered stock held for one month - Nonaffiliate selling restricted stock held for more than six months
Control person selling registered stock held for one year, control person selling restricted stock held for two years
Which of the following preferred issues is most likely to fluctuate in line with the issuer's common shares?
Convertible
Which of the following issues are exempt from registration under the securities act of 1933
ABC corporation commercial paper
ABC stock is currently trading at $63. Julia Miller would like to purchase ABC stock, but not at $63. If the price of ABC stock were to fall to $58 or less, then Miller wants to buy the stock. Which type of order should Miller place considering her objective. A. Market order B. Buy limit C. Buy stop D. Buy stop limit
Buy limit
Public offerings of securities are regulated under
Securities Act of 1933
What federal law regulates the initial sale of securities to the public?
Securities Act of 1933
Which of the following would take place in the primary market? - Securities sold to the public by the issuer - Securities sold on both the OTC and NYSE - Securities bought and sold on the NYSE - Securities bought and sold on the OTC
Securities sold to the public by the issuer
Which of the following is not considered a risk of owning common stock? - Shares are transferable - Shares have a guaranteed value - Stocks generate a guaranteed income - Stocks have a high priority if the corporation dissolves
Shares are transferable
Under the Securities Act of 1933, which of the following is a nonexempt security? - Commercial paper - US government bonds - Municipal bonds - Shares issues by a U.S. government bond fund
Shares issues by a U.S. government bond fund
The purchase of an equity option settles ______; the exercise of an equity option settles ______.
T+1, T+2
The XYZ Company is looking to offer shares of its common stock to the public. Which of the following laws enacted by Congress would have the most relevance to the issuance of these securities?
The Securities Act of 1933
Initial public offering
The first time an issuer distributes securities to the public
Which of the following best describes how a buy stop at 39 would fill?
The next available price after the market price rises to 39
Equity
The ownership interest of common and preferred stockholders in a corporation
How many primary offerings can a corporation issue?
Unlimited
Additional public offering
When a corporation offers additional shares of stock to the public as a primary market transaction
fiduciary
a person that manages assets for another person, a beneficiary
During the cooling-off period of a new registration filed with the Securities and Exchange Commission (SEC)
a red herring may be given to prospective investors
An offering in which one or more stockholders in the corporation are selling all or a portion of their own shares to the investing public for the first time is known as
a secondary offering
In the primary markets the seller is
always the issuer
Your customer purchases shares of a common stock of a major exchange in a trade that settles the same day. This is an example of which type of trade?
cash settlement trade
Exchange market/auction market
composed of the NYSE and other exchanges on which listed securities are traded
Benefits of owning preferred stock
dividend preference, priority at dissolution over common stock
When the securities and exchange commission clears securities for sale to the investing public this is the
effective date
An opening transaction can be
either a buy or a sell
The access equals delivery rule applies to
final prospectus and aftermarket prospectus delivery requirements
A signature endorsement on a stock certificate would not be required for good delivery if the shares were
held in street name
All of the following are false descriptions of different securities offering types except
in a primary additional issue, underwriting proceeds go to the issuer
A stop order, once triggered, becomes
market order
In the secondary markets the seller is
never the issuer
In the capital markets, securities such as stocks and bonds can be
offered by both public and private sectors
State registration is not required if the transaction is exempt. An example of an exempt transaction would be
one that is unsolicited
Risks of Owning Preferred Stock
purchasing power risk, interest rate sensitivity, decreased or no dividend income, priority at dissolution
A corporation enlists the services of a transfer agent, who would be expected to handle all of the following functions except
registering the corporations securities with the state
The securities act of 1933 protects investors who buy new issues by doing all of the following except
requiring the licensing of persons affiliated with broker-dealer
All of the following are benefits of using a prime broker except: - multiple executing brokers - consolidation of records - cost savings - research
research
All of the following would be secondary market transaction except
securities sold to the public by the issuer
A registration statement disclosing material information about a new issue must be filed with the securities exchange commission. The accuracy and adequacy of the registration statement is the responsibility of
the issuer
An underwriter is placing a tombstone advertisement for a company's new issue. A prospective investor might expect to see all of the following information on the advertisement except
the names of the company's officers
Under the uniform practice code, regular-way transactions for common stock settle on
the second business day following the trade date
isaac james has some call options in his account that he would like to exercise. He wants to know when the resulting purchase of the stock would settle. You would tell him
trade date plus 2 business days
ABC stock is quoted at 25.20 bid - ask 25.22 5 x 12. The spread is
$0.02
2 exemptions from Securities Act of 1933
- commercial paper, bankers' acceptances, and other securities that have maturities of 270 days or less - insurance policies and fixed annuity contracts
An investor receives a quote of 48.70-48.75 for XYZ common stock. Which of these is true? - Purchasing the stock will cost 48.70 per share - Purchasing the stock will cost 48.75 per share - The spread is $.05 - The investor will receive d48.75 per share if selling
- purchasing the stock will cost 48.75 per share - the spread is $.05
BigCo is currently quoted bid 32 ask 32.5 10 x 12. Your customer may be able to buy: - 1000 shares at $32/share - 1200 shares at $32/share - 1200 shares at $32.50/share - 1000 shares at $32.50/share
1200 shares at $32.50/share
After the issuer files a registration statement with the Securities and Exchange Commission (SEC), the time known as the cooling-off period begins. This allows a registration to become effective as early as
20 calendar days after the date the SEC has received it
A buy stop order at 39 could fill at which of the following prices? - 38 - 39 - 40 - 41
38, 39, 40, 41
Which of the following securities would likely provide the greatest potential for capital appreciation? - A preferred stock - A US Treasury STRIPS - A common stock - A corporate bond
A common stock
Security
A negotiable instrument evidencing debt of, or equity in, a common enterprise in which an investment is made with the expectation of financial return
Underwriters
A type of broker-dealer that works with an issuer to bring its securities to the market and sell them to the investing public
Syndicate
A type of joint venture where the BDs share both the risk and the profits from the offering
Municipal advisor
Advises municipalities on selling securities
A customer's confirmation shows that they paid a commission of $74 on a purchase of 100 shares of a $35 stock. The broker-dealer is acting in what capacity?
Agency
Which of the following may purchase an IPO at the POP? - Jim, a registered rep for Seacoast securities, Jim's brother Robert (a contractor), Jim's niece Amber (a chef), Jim's father Roy (retired engineer)
Amber
Institutional investor
An entity that pools money to purchase securities and other investment assets
Best efforts underwriting
Calls for the underwriters to sell securities from the issuer to the investor acting simply as an agent
Another term for stocks and bonds is: - Equity and debt - Shares and units - Voting and unvoting - Taxable and tax free
Equity and debt
When a broker-dealer maintains an inventory in a particular stock and trades that stock in the OTC market, it is acting as - an agent - a market maker - a broker - an underwriter
Market Maker
Which of the following issuers are exempt from the registration requirements of the securities act of 1933
First National Bank
Which of these statements is true regarding shelf offerings?
For securities offered via a shelf registration, a supplemental prospectus must be filed with the SEC before each sale
A stock trade took place on Tuesday, July 2. When would regular way settlement normally take place?
Friday, july 5
During the cooling-off period, underwriters may not:
Gather binding indications of interest
Municipality
Governments at the state or lower level, such as counties and cities
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 call a
Green Shoe option
A market order to buy must be executed when and at what available price?
Immediately, at the lowest
A large- volume transaction for an institutional investor has occurred on an alternative trading system or network. Entered anonymously, the general public will see no information regarding the volume, price, or who the institutional investor was. This transaction scenario is generally referred to as having occurred:
In a dark pool
Bao Chiang executes a trade to purchase 100 shares of ABC Corporation common in her cash account on Thursday, June 30. Cash must be in her account sufficient to pay for the trade by the close of business on A. July 1 B. July 2 C. July 4 D. July 5
July 5
The SEC regulates the trading of all of the following except: - the New York Stock Exchange - the Chicago Board of Options Exchange - the London Stock Exchange - the OTC market
London Stock Exchange
Which of the following offerings is most likely exempt from the registration requirements of the securities act of 1933?
Private (nonpublic) securities offerings
Primary offerings
Proceeds go to the issuer
Retail investor
An individual who makes investments such as the purchase of securities for his or her account rather than for an organization
Seabird Airlines is selling shares to the public for the first time. The company intends to use the proceeds from the sale of its stock to purchase several new passenger aircraft. This offering is an example of a. a secondary offering. b. a rights offering. c. an initial public offering. d. a subsequent primary offering.
An initial public offering
Under the intrastate offering rule (Rule 147), when may a resident purchaser of securities resell them to a nonresident?
At least six months after the date of purchase
Which of the following would most likely require shareholder approval? - Declaring a dividend - Firing the CEO - Hiring a new CFO - Changing the corporation's name
Changing the corporation's name
Which of the following is not an example of a fixed-income security
Common stock that has historically paid dividends
Why would a foreign corporation want to see American depositary receipts issued for its common stock?
Easier access to US capital markets
A number of authorized shares is distributed to shareholders as part of a corporation's capital formation. What are these shares called?
Issued shares
In a stock buyback, the shares are purchased by which of the following? - Owner - Board of directors - Issuer of the shares - Investment trust
Issuer of the shares
On Friday, July 1 your customer purchased 10 3% T-bonds maturing in 15 years. This trade will settle on
July 5
Owning an American depositary receipt ADR effectively eliminates which of the following risks?
Liquidity risk
Characteristics common to penny stocks would include which of the following?
Market price less than $5 per share and unlisted
A customer has returned a signed proxy statement for stock held in street name by a member firm. He did not indicate how he wanted to vote for any issues listed on his ballot. What action, if any, is required of the member firm? - No action is required and no votes are cast - The firm must contact the beneficial owner of the stock and ask for direction on how to vote on the proposals listed - The firm may vote on the ballot as it sees fit for the benefit of the customer - The firm must vote in accordance with the recommendations made by the issuer of the stock
The firm must vote in accordance with the recommendations made by the issuer of the stock
The ABC chemical corporation wishes to advertise its upcoming offering of common stock in a tombstone advertisement that they, the issuer, will place. When placing the tombstone advertisement which of the following would be least likely to appear?
The names of the investment bankers underwriting the issue
Which of the following statements regarding the third market is true? - It is composed of listed securities traded OTC - It is composed only of unlisted securities - The services of a brokerage firm are not used - It refers to the block trading of unlisted securities
Composed of listed securities traded OTC
Your customer, Ellesha, places a sell stop at 50 on DEZ stock while it is trading at $53 per share. After the order is elected, Ellesha may sell her shares at which of the following prices? I. $48 II. $49 III. $50 IV. $51 A) III and IV B) I, II, and III C) I and II D) I, II, III, and IV
D
Primary market
Where securities are sold by the issuer - corporation or government - to the investing public in what are known as issuer transactions
Secondary market
Where securities trade between investors
Your customer opens a position at 45 and then closes it later at 47. This represents
a 2-point gain or loss
A select pair or group of companies organized to underwrite corporate or municipal securities is best known as
a syndicate
Modulux, Inc., a NYSE listed manufacturing company, was founded by Clarence Mod. Clarence is now 82 years old and is looking to divest his significant interest in Modulux to capitalize the Mod Family Foundation, a charity. He has enlisted the help of Seacoast Securities, a FINRA member broker-dealer based in Seattle, to run the sale. Seacoast Securities is acting as
an investment banker
The founder of a large, publicly traded company is looking to sell a very large number of shares of their personal holdings of the company stock. They enlisted the help of Great Plains Investments LLC, a FINRA member broker-dealer based in Omaha, to run the sale. Great Plains is acting as
an investment banker
An investor with no other positions in LMN stock purchases 600 shares at the market. This investor is
long LMN stock and bullish
A preliminary prospectus (red herring)
may be used to gather indications of interest
Carrying forms, those that carry customer accounts, must
segregate customer funds and securities from the firms' funds and securities
Correspondent firms would be likely to have relationships with which of the following types of broker-dealers?
self-clearing
Short position
sell to open, buy to close
All of the following are true for designated market makers except: - they are members of an exchange - they are charged with maintaining a fair and orderly market - they maintain an inventory of the assigned stock - they guarantee the customer will get a profitable trade
they guarantee the customer will get a profitable trade
