Series 79 - Final Exams Part 2 questions n answers 2024

Series 79 - Final Exams Part 2Which of these tax-advantaged vehicles is most appropriate for hundreds of investors? Master limited partnership Of the options listed, MLPs are most appropriate for lots of investors as they can do a public offering of stock for example, publicly traded private equity firms are MLPs. S-corps are tax-advantaged but are limited to 100 shareholders. C-corps do not offer tax advantages as they pay corporate income tax. REITs are the best answer when referring to real estate investments or income earning investments. Which of the following is true regarding a stalking horse bidder? A creditor may be a stalking horse bidder In a bankruptcy filing, the debtor actively recruits an initial bidder to sign a binding bid (i.e. asset purchase agreement). The goal for the debtor is to "kick-start" an auction once the initial bidder signs on. As such, the stalking horse bid is, by definition, non-exclusive. Any investor can technically be a stalking horse bidder, even a lender to the company. Things to Look Out for When Buying a Used Caravan In a business combination that requires a vote of shareholders to approve a proposed deal, involving a change of securities, a prospectus must be delivered prior to the vote SEC Rule 153a requires that a prospectus be delivered prior to the vote, in business combinations that depend on a shareholder vote and involve a change of securities.