Series 24 STC Chapter 1
SRO - correct answer ✔Self-Regulating Organization
REIT - Real Estate Investment Trust - correct answer ✔At least 75% of gross
income derived solely from real estate rent or interest on mortgages
95% of gross income derived from real estate activities or dividends and
interest
Must be a trust
Must distribute at least 90% of income. Shareholders responsible for tax
Nontraded REIT - correct answer ✔Offers limited liquidity
Provide valuations within 18 months after cessation
ADR - correct answer ✔Claim to foreign securities
Sponsored = pay cost
Reverse Convertible Security - correct answer ✔short-term notes issued by
banks and bd's which pay a coupon rate above prevailing market rates.
SEC Reporting Company - correct answer ✔Issuer has securities listed on a
national securities exchange / publicly traded corporation total assets
>$10,000,000 and more than 500 shareholders
PIPE - correct answer ✔Private Investment in Public Equity
Distribution of restricted securities to small group of accredited investors
, Securities Act of 1933 - correct answer ✔Requires nonexempt securities to
be registered with SEC. Attempts to prevent fraud in the sale of new issues by
requiring investors be provided with enough relevant information about the
offering to make an informed decision
Form S-1 - correct answer ✔IPO form. Foreign file F-1
Form S-3 - correct answer ✔Short form for seasoned issuers. Minimum is
$75 million of public float in voting and nonvoting common equity. Precluded if
it has failed to pay a divided on preferred stock, failed to pay interest on bond,
or delinquent in SEC filings. F-3 for foreign companies
Form S-4 - correct answer ✔Securities offered as a result of business
combinations such as mergers, acquisitions, consolidations, reclassification,
or transfers
Form S-8 - correct answer ✔Securities made available through employee
benefits plans
Red Herring - correct answer ✔Preliminary registration statement, price is
omitted but price range is permitted
Preliminary Prospectus - correct answer ✔AKA Red Herring
Amendments - correct answer ✔Material information added or altered to
original filing. Will not delay effective date if registration is for same class or
represent no more than 20% of maximum offering price
Effective date - correct answer ✔20th day after the filing date of last
amendment
SRO - correct answer ✔Self-Regulating Organization
REIT - Real Estate Investment Trust - correct answer ✔At least 75% of gross
income derived solely from real estate rent or interest on mortgages
95% of gross income derived from real estate activities or dividends and
interest
Must be a trust
Must distribute at least 90% of income. Shareholders responsible for tax
Nontraded REIT - correct answer ✔Offers limited liquidity
Provide valuations within 18 months after cessation
ADR - correct answer ✔Claim to foreign securities
Sponsored = pay cost
Reverse Convertible Security - correct answer ✔short-term notes issued by
banks and bd's which pay a coupon rate above prevailing market rates.
SEC Reporting Company - correct answer ✔Issuer has securities listed on a
national securities exchange / publicly traded corporation total assets
>$10,000,000 and more than 500 shareholders
PIPE - correct answer ✔Private Investment in Public Equity
Distribution of restricted securities to small group of accredited investors
, Securities Act of 1933 - correct answer ✔Requires nonexempt securities to
be registered with SEC. Attempts to prevent fraud in the sale of new issues by
requiring investors be provided with enough relevant information about the
offering to make an informed decision
Form S-1 - correct answer ✔IPO form. Foreign file F-1
Form S-3 - correct answer ✔Short form for seasoned issuers. Minimum is
$75 million of public float in voting and nonvoting common equity. Precluded if
it has failed to pay a divided on preferred stock, failed to pay interest on bond,
or delinquent in SEC filings. F-3 for foreign companies
Form S-4 - correct answer ✔Securities offered as a result of business
combinations such as mergers, acquisitions, consolidations, reclassification,
or transfers
Form S-8 - correct answer ✔Securities made available through employee
benefits plans
Red Herring - correct answer ✔Preliminary registration statement, price is
omitted but price range is permitted
Preliminary Prospectus - correct answer ✔AKA Red Herring
Amendments - correct answer ✔Material information added or altered to
original filing. Will not delay effective date if registration is for same class or
represent no more than 20% of maximum offering price
Effective date - correct answer ✔20th day after the filing date of last
amendment
