Which of the following holders of unregistered stock is precluded from selling shares under Rule 144?
Answer(s): C
a broker/dealer firm. A broker/dealer cannot use Rule 144 when selling stock.
Bubba Corporation has a registered public offering of 750,000 shares at $40. An underwriter of 30,000 shares is advised by the manager that its retention will be 70%.How many shares may the underwriter sell to its own customers?
Answer(s): B
21,000. The underwriter is permitted to retain 70% of the 30,000 shares. The remaining 9,000 shares are kept in the pot by the manager.
In a competitive bidding for mortgage bonds of a large public utility the winning underwriter is determined by:
the lowest net interest cost to the issuer. All competitive bids are based upon the lowest interest cost.
Who is responsible for verifying that limited partners meet net worth and income requirements?
Answer(s): D
the registered representative. Assuring that limited partners meet net wroth and income requirements is the responsibility of the registered representative.
Which of the following is not in the subscription agreement for a limited partnership offering?
granting of power of attorney to the limited partners. The other three choices are in the subscription agreement. Power of attorney is granted to the general partner, not the limited partners.
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