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Series 79 – Practice Test 3

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Question 1 of 10

1. Question

How are sales of common stock displayed during NYSE trading hours on the consolidated tape?

As they occur
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On the effective date of the offering only
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They aren’t
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None of the above
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Correct

Incorrect
Question 2 of 10

2. Question

The significant difference between a syndicate concession and a reallowance is that

The concession is earned by syndicate members and a reallowance is earned by selling group firms.
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The concession is earned by members of the underwriting syndicate and reallowance is earned only by the managing underwriter.
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The concession is earned by members of the syndicate and reallowance is paid as a finder’s fee to non-registered brokerage firms.
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The concession is earned by members of the syndicate who have a firm commitment and reallowance is paid to firms who are not part of the formal underwriting hierarchy.
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Correct

Incorrect
Question 3 of 10

3. Question

VWAP is a type of transaction which is executed at a:

Volume weighted average price
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Intermarket sweep price
Correct Incorrect Correct answer

The opening of trading on the Exchange
Correct Incorrect Correct answer

Variable withholding asset percentage
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Correct

Incorrect
Question 4 of 10

4. Question

Rule 105 of Reg. M states that

Short sales during the cooling off period of an additional-share offering are unlawful.
Correct Incorrect Correct answer

Short sales may not be executed by market makers in the 5 business days prior to the effective date of a follow-on offering.
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Short sellers during the 5 business day period prior to the effective date of an additional share offering must close out their short position prior to the effective date or they are disallowed from purchasing new shares on the offering.
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Only passive market makers may engage is executing short sales in a follow-on offering during the cooling off period.
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Correct

Incorrect
Question 5 of 10

5. Question

FINRA’s Committee on Corporate Financing:

Approves new corporate offerings.
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Judges the fairness of underwriting terms and commissions on new corporate offerings.
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Approves the new issue prospectus.
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Will permit non-FINRA member to join the new issue syndicate but only on a best efforts basis.
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Correct

Incorrect
Question 6 of 10

6. Question

When the investment banking department is conducting road-show presentations, research analysts:

Are permitted to be part of the presentation.
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Are permitted to be in attendance but only as back-up to the statistics in the presentation.
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Are not permitted to participate unless they possess the Series 86 & 87 FINRA licenses.
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Are not permitted to be present or participate.
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Correct

Incorrect
Question 7 of 10

7. Question

Regulation M is designed to prevent manipulation in follow-on offerings by:

Broker-dealers who are in the syndicate or selling group only
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Any broker-dealer regardless of whether they are a participant in the distribution
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Officers, directors, control persons and others defined as insiders only
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Any broker-dealer and all insiders of the issuer
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Correct

Incorrect
Question 8 of 10

8. Question

One of the provisions in the Dodd-Frank Wall Street Reform Act provides that:

Advertising a Regulation D offering is permitted under limited circumstances.
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Any investment adviser managing 25 minion dollars in AUM is regulated by the state in which its principal office is located.
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Any investment adviser managing 30 million dollars in AUM is regulated by the SEC.
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All of the above.
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Correct

Incorrect
Question 9 of 10

9. Question

Stabilizing an price of an IPO:

Is considered unlawful price fixing.
Correct Incorrect Correct answer

Is permitted to be done under certain circumstances but only by the managing underwriter.
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Is permitted under certain circumstances either by a managing underwriter or a syndicate member designated by the managing underwriting.
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Can only occur on the effective date of the offering.
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Incorrect
Question 10 of 10

10. Question

The cooling off period in a Rule 147 offering is:

10 days
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20 days
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25 days
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Not a specific number of days
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Quiz Summary

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1. Question

How are sales of common stock displayed during NYSE trading hours on the consolidated tape?

2. Question

The significant difference between a syndicate concession and a reallowance is that

3. Question

VWAP is a type of transaction which is executed at a:

4. Question

Rule 105 of Reg. M states that

5. Question

FINRA’s Committee on Corporate Financing:

6. Question

When the investment banking department is conducting road-show presentations, research analysts:

7. Question

Regulation M is designed to prevent manipulation in follow-on offerings by:

8. Question

One of the provisions in the Dodd-Frank Wall Street Reform Act provides that:

9. Question

Stabilizing an price of an IPO:

10. Question

The cooling off period in a Rule 147 offering is: