Series 79 - Practice Exam Qs and As verified to pass 2024

Series 79 - Practice Exam Qscompanies with public float above 100M and 1M of average daily trading volume have this restriction with share buybacks - correct answer permitted to execute one block trade a week without any volume restriction Which of the following is typically addressed in the indemnification provision of a definitive agreement for a private company seller? - correct answer seller provides to buyer on environmental liabilities 424B document - correct answer final prospectus quick ratio - correct answer current assets - inventories / current liabilities FINRA Rule 2269 requires members acting as brokers or dealers to give customers a written notice of interest for which of the following transactions? - correct answer I. Primary offerings II. Secondary distributions III.Securities in accounts advised for a fee underwriting spread example - correct answer The total spread is the manager's fee of $.25 plus the $.85 full takedown, for a total of $1.10. The underwriting fee is a component of the full takedown, so is not taken into account in the calculation. As the syndicate manager, Jones Securities receives the full spread for the 1 million shares it sells and the manager's fee of $.25 for the remaining 4 million shares: 1 million shares x $1.10 = $1.1 million 4 million shares x $.25 = $1.0 million Total = $2.1 million qualifications for QIBs - correct answer The two most important attributes that make QIUs truly independent are: 1) lack of a conflict of interest in the offering or involving the issuer; and 2) previous experience in at least three similar public offerings in the preceding three years.