SIE Practice Exam #1 (rated A+) questions fully solved 2023

SIE Practice Exam #1 (rated A+) questions fully solved 2023 Form letters, telemarketing scripts, and seminar texts are examples of: [A] Correspondence [B] Advertisements [C] Sales literature* [D] Educational material - correct answer EXPLANATION "Sales literature" is defined as marketing material where the recipients can be targeted and the firm can control who receives the materials. "Advertisements" are marketing materials where the firm cannot control who receives the information and cannot designate or specify a target audience. Which of the following accurately describes a secondary offering or secondary distribution? [A] An offering of securities that remained after an initial public offering that was not fully sold [B] A rights offering of primary shares that would take place after the completion of an initial public offering [C] Transactions that take place within an underwriting syndicate before shares are actually made available to the public [D] An offering in the secondary market of securities owned by one or more major owners wishing to sell large volumes of their shares.* - correct answer EXPLANATION A secondary offering or secondary distribution is the redistribution or sale of a large block of securities held by one or more major shareholders who wish to sell a large volume of shares. Large shareholders are often restricted in the amount of shares that can be sold through normal channels in the secondary market. A registered secondary offering provides the opportunity for these individuals to sell larger volumes of shares than what may be permitted through normal secondary market trades. Which of the following is generally NOT TRUE in relation to Corporate Commercial Paper? [A] Commercial paper is normally offered in book-entry form. [B] Commercial paper is normally issued in callable form.*