Regulation A permits a short form of filing for offerings of new securities provided the total amount of the offering does not exceed:
Answer(s): B
$5,000,000. This is the maximum under Regulation A.
Which of the following would not normally be a function of an investment banker?
Answer(s): A
providing short-term capital needs to client companies. The short-term capital needs of companies are normally the function of commercial bankers, not investment bankers.
A public offering by an investment banker in which any securities not sold are returned to the issuer is known as:
a best efforts offering. With a best efforts offering the investment banker does not make any guarantee that all the offered securities will sell. The investment banker pays for only those securities that are actually sold and returns unsold shares to the issuer.
To qualify as an intrastate offering under SEC Rule 147, which of the following is true of the issue?
it must be sold only to bona fide residents of one state. Under Rule 147 intrastate offerings are sold only to residents of one state and cannot be sold outside that state for nine months. All the other choices are incorrect about the rule.
Which of the following does not affect the public offering price of a new issue?
Answer(s): D
the selling group’s determination of value in the prevailing market conditions. The offering price is determined by factors related to the issuer.
Post your Comments and Discuss FINRA SERIES 7 exam prep with other Community members:
Our website is free, but we have to fight against AI bots and content theft. We're sorry for the inconvenience caused by these security measures. You can access the rest of the SERIES 7 content, but please register or login to continue.