Which of the following must be true in order for an offering to qualify as an intrastate offering under Rule 147?
Answer(s): D
all of the above are required. An intrastate offering under Rule 147 requires qualification under all of these conditions.
Under what conditions may an FINRA member firm sell an IPO to an employee of another broker/dealer?
under no circumstances. An FINRA member firm may not, under any circumstances, allocate shares to itself, any of its employees, or to any employee of a firm that underwrites securities.
A provision under which an underwriter can cancel a proposed public offering due to some unforeseen occurrence is known as a:
market-out clause. This is used only in the case of some unusual occurrence.
In stabilizing a new issue, the manager may make a “syndicate penalty bid”. This means that:
Answer(s): A
the underwriter will be penalized his profit on any securities repurchased from his clients. Since clients sell shares back to the syndicate shortly after the offering, the underwriter has not made a proper distribution. The underwriter therefore may be penalized any profit.
The Securities Act of 1933 provides for:
Answer(s): C
regulation of new issues of securities. The first two choices are covered in the Securities and Exchange Act of 1934.
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