Series 79 Questions with 100% correct answers 2024

Series 79 QuestionsFor an EGC, when can research be published? - correct answer Immediately after the effective date Can XYZ company preview an equity research report written by an investment bank about itself? - correct answer Equity research may be reviewed by the subject company solely for verification of facts. The draft submitted to the company must omit the research summary, rating, or price target. Legal / compliance must review the full report before it is submitted to the target company When would a greenshoe clause most likely be exercised? - correct answer The underwriter is most likely to exercise a greenshoe clause when the new issue is trading above the IPO price. The purpose of the clause is to allow the underwriter to oversell a new issue. The clause can increase the size of the deal by up to 15%. Which type of corporation is eligible to claim a "dividends received deduction"? - correct answer A C Corporation. The dividends received deduction offers tax relief for dividends paid by one C corp to another c corp Who pays income taxes on profits earned by a limited partnership? - correct answer All partners. All profits and losses are distributed to individual partners and reported to the IRS on personal income tax returns. The partnership files only an "information return," called a Schedule K-1, with the IRS. Karen is a broker who has a control relationship with the issuer of securities that she is offering. Under Rule 15c1-5, when must she disclose this relationship in writing to avoid manipulation and deceptive practices? - correct answer Any control relationship must be disclosed to the client who is offered securities, in writing, before completion of the transaction. The disclosure of control relationships is required of all securities sales, not just offerings or new issues. In a Direct Participation Program, $200,000 is paid to wholesaling, retailing or marketing firms engaged in the distribution of securities. This expense should be categorized under - correct answer Underwriting compensation. Any compensation paid from any source to underwriters, broker-dealers or their affiliates should be included in underwriter compensation. The total of all underwriting compensation may not exceed 10% of gross offering proceeds.