Series 79 with verified solution 2024 already passed

Series 79Best Efforts Underwriting - correct answer the type of underwriting in which the underwriter sells as much of the issue as possible, but can return any unsold shares to the issuer without financial responsibility. The underwriter is acting as an agent, not a principal Mini-Max Offering - correct answer A best efforts underwriting setting a floor or minimum, which is the least amount the issuer needs to raise in order to move forward with the underwriting and a ceiling or maximum on the dollar amount of securities the issuer is willing to sell. SEC Rule 15c2-4 - correct answer requires that broker dealers participating in all or none or mini max offerings deposit investor funds in a separate escrow account at an independent bank or any other QFI for the benefit of the investors Standby Underwriting - correct answer a commitment by an underwriter to purchase any shares that are not subscribed to in a rights offering SEC Rule 3a4-1 - correct answer Allows employees of the issuer to help sell the issue as long as the employees are not subject to statutory disqualification and not associated with any broker dealer. Only comes into play in small offerings Syndicate Formation - correct answer To reduce risk, an underwriter will invite other member firms into the underwriting group. The syndicate manger is often referred to as the statutory (or lead) underwriter Selling Group Formation - correct answer To broaden distribution channels, the manager will invite other member firms into the group. These firms assume no risk and help the syndicate sell the new issue Agreement Among Underwriters - correct answer The agreement that sets forth the terms under which each member of an underwriting syndicate will participate in a new issue offering and states the duties and responsibilities of the underwriting manager.