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Series 7 Top Off Section 1- 7% of Exam questions and answers graded A+
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Series 7 Top Off Section 1- 7% of Exam questions and answers graded A+
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Series 7 Top Off Section 1- 7% of ExamCan a syndicate manager force members to participate in a bid? - correct answer ✔✔No, the firm can
ask members to reach a consensus, change the composition of the syndicate, or withdraw from the
bidding process
Nonmembers of a syndicate who are assisting in its sale of bonds buy bonds at a discount called ? -
correct answer ✔✔A concession
How to calculate the spread? - correct answer ✔✔Sum of manager's fee, the underwriting fee, and the
selling concession.
What is a good faith deposit on a municipal bond underwriting? - correct answer ✔✔-It is applied
against winning bidder's payment for the issue
-It us returned to the unsuccessful bidders
-It is lost if the syndicate fails to carry out the provisions of the underwriting agreement
What actions are prohibited by the registered rep before a registration statement for a new issue? -
correct answer ✔✔-Solicit Indications of interest for a security
-Solicit orders
-Confirm the sale of the security to a customer
What securities are exempt from registration provisions of the securities Act of 1933? - correct answer
✔✔-National and State bank securities
-Sate and municipal bonds
-Commercial Paper
-Bankers Acceptances that have maturities of no more that 270 days
When an existing, long established publicly traded corporation issues a large block of new shares in
order to expand or modernize, this is referred as? - correct answer ✔✔A primary distribution
, In reviewing prospectuses and registration statements, the SEC does what? - correct answer ✔✔The SEC
requires full disclosure regarding new issues
The SEC does not approve or disapprove an issue no do they guarantee the accuracy or adequacy of the
information
What basic information does a prospectus include for a new issue? - correct answer ✔✔An overview and
history of the issuer's business and any risk associated with the offering
What is usually the largest component of a corporate underwriting spread and received by members of
the selling group? - correct answer ✔✔Concession
What makes up the spread of a municipal competitive bid? - correct answer ✔✔The difference between
the bid and the production (the price at which the bonds are re-offered to the public
With this method of evaluating bids, the issued will take into consideration the timing of interest
payments - correct answer ✔✔True Interest Cost
When is a Tombstone as published? - correct answer ✔✔On or after the effective date.
What info does a tombstone ad include? - correct answer ✔✔The effective date
The type of security
The public offering price
The name of the lead underwriter
Red Herring - correct answer ✔✔Used to accept indications of interest from investors
Additional information may be added to red herring at a later date
The final offering price does not appear
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