SIE Exam: Knowledge of Capital Markets Questions & Answers 2023-24

SIE Exam: Knowledge of Capital Markets Questions & Answers 2023-24 Does the SEC approve or disapprove securities? - ANSWER-No, it just clears the securities for public sale. Prior to the registration statement filing, can there be marketing or sales of the securities? - ANSWER-No, there can be neither What is permitted during the cooling-off period? - ANSWER-Marketing of securities is permitted, but no sales can be made What happens during the pre-registration period? - ANSWER-Bake-off, mandate, preparation of filings, due diligence What happens during the cooling-off period? - ANSWER-20 days of SEC reviews, road show, non-binding indications of interest (IOIs) What happens during the post-effective date? - ANSWER-Bankers confirm IOIs and allocate shares to investors, securities begin trading What are 6 exempt securities under the '33 Act (i.e. don't have to register with SEC)? - ANSWER-1. US government securities 2. Nonprofit securities 3. Municipal bonds 4. Commercial paper 5. Short-term corporate debt 6. Commercial bank securities What does Rule 147 allow? - ANSWER-For a company to sell securities to state residents only and avoid SEC registration.