Series 79 Benchmark Exam || very Flawless.
All of the following factors are stabilizing factors in the value of a country's currency EXCEPT
correct answers low per capita purchasing power
The effective federal funds rate quoted in the business news represents the average rate for the
previous correct answers day
A company must meet ongoing reporting requirements of the Securities Exchange Act of 1934 if
it correct answers I. Has securities that trade in interstate commerce
II. Exceeds a size requirement
A large accelerated filer's fiscal year ends on September 30. By what date must it file its first
quarterly 10-Q report for the next fiscal year, beginning October 1? correct answers February 9
Under Regulation FD, a corporation is excused from making public disclosure when sharing
information with all of the following EXCEPT correct answers a research analyst
When an IPO trades below the Public Offering Price which of the following is the most likely
way the underwriter will cover an oversold transaction? correct answers Open market
repurchases
Shares offered in a public equity offering that provide proceeds directly to selling shareholders
refer to correct answers secondary shares
In an offering with multiple bookrunners, the lead bookrunner's name is shown in which location
on the prospectus in relation to the other underwriters? correct answers top, left
A corporation is offering 300,000 shares to the public at $15 per share. The manager's fee is $.15
per share, the underwriter's fee is $.20 per share, and the concession is $.65 per share.
Participations are 100,000 shares for the manager and 200,000 shares for the underwriting
syndicate. Retentions are 100% for the manager and 75% for the syndicate members. The total
amount received by the issuer is correct answers $4,200,000
$15 - $0.15 - $0.20 - $0.65 = $14
300,000 * $14 = $4,200,000
A customer provides an indication of interest in an offering, and the underwriter allocates these
shares to the customer's account. The shares are said to be correct answers "Circled"
FINRA Rules 5130 prohibits the sale of a new issue to all of the following accounts EXCEPT
correct answers An individual account owned by a client of the managing underwriter
During a "blackout period" an analyst is not allowed to correct answers Make public appearances
or issue research for the issuer's securities
, Which of the following is TRUE regarding the restricted period in connection with a merger?
correct answers Is it based only on the target's shareholder vote
All of the following would be considered compensation to the syndicate EXCEPT correct
answers issuer expenses
All the following are exempt from the registration requirements of the Securities Act of 1933
except correct answers AAA rated corporate bonds
A Regulation A+ exemption applies to correct answers a new issue of $50,000,000 or less
Company O enters into a Definitive Agreement to purchase Company N. Company O plans to
execute the merger via a two-step merger, beginning with a tender offer to Company N
shareholders, including the CEO. Contingent on the closing of the deal, the CEO will also be
receiving a compensation package for taking on a new role at Company O. This compensation
package would be permitted only with approval from correct answers a majority of Company O's
compensation committee
Under Rule 10b-18 which of the following is TRUE regarding the maximum number of shares
an issuer can repurchase in any given day to be within the SEC's safe harbor? correct answers Up
to 25% of the stock's ADTV over the prior four weeks
An investment bank (a FINRA member) is rendering a fairness opinion in a merger transaction.
The firm will be paid a base fee of $750,000 for writing the opinion, whether or not the deal
closes. It will also receive a contingent bonus of $250,000 if the deal closes. Is this fee structure
allowed, and if so what part of compensation must be disclosed? correct answers Yes, the
structure is allowed and the contingent bonus must be disclosed
ABC, a public company is making an all-cash offer to acquire the shares of XYZ, another public
company. Acceptance or rejection of the offer depends on a majority vote of XYZ's shareholders.
Which documents must be delivered to XYZ's shareholders? correct answers A proxy only
When a company files for Chapter 11 bankruptcy, which of the following is true regarding the
Board of Directors? correct answers The board remains intact
When a partnership dissolves, what is the proper order for settling accounts with the following
groups? correct answers IV. Secured lenders
III. General creditors
II. Limited partners
I. General partners
If a SIPC member corporation were to go bankrupt, the trustee appointed would be responsible
for all of the following EXCEPT correct answers supervising the distributions for commodity
accounts
All of the following factors are stabilizing factors in the value of a country's currency EXCEPT
correct answers low per capita purchasing power
The effective federal funds rate quoted in the business news represents the average rate for the
previous correct answers day
A company must meet ongoing reporting requirements of the Securities Exchange Act of 1934 if
it correct answers I. Has securities that trade in interstate commerce
II. Exceeds a size requirement
A large accelerated filer's fiscal year ends on September 30. By what date must it file its first
quarterly 10-Q report for the next fiscal year, beginning October 1? correct answers February 9
Under Regulation FD, a corporation is excused from making public disclosure when sharing
information with all of the following EXCEPT correct answers a research analyst
When an IPO trades below the Public Offering Price which of the following is the most likely
way the underwriter will cover an oversold transaction? correct answers Open market
repurchases
Shares offered in a public equity offering that provide proceeds directly to selling shareholders
refer to correct answers secondary shares
In an offering with multiple bookrunners, the lead bookrunner's name is shown in which location
on the prospectus in relation to the other underwriters? correct answers top, left
A corporation is offering 300,000 shares to the public at $15 per share. The manager's fee is $.15
per share, the underwriter's fee is $.20 per share, and the concession is $.65 per share.
Participations are 100,000 shares for the manager and 200,000 shares for the underwriting
syndicate. Retentions are 100% for the manager and 75% for the syndicate members. The total
amount received by the issuer is correct answers $4,200,000
$15 - $0.15 - $0.20 - $0.65 = $14
300,000 * $14 = $4,200,000
A customer provides an indication of interest in an offering, and the underwriter allocates these
shares to the customer's account. The shares are said to be correct answers "Circled"
FINRA Rules 5130 prohibits the sale of a new issue to all of the following accounts EXCEPT
correct answers An individual account owned by a client of the managing underwriter
During a "blackout period" an analyst is not allowed to correct answers Make public appearances
or issue research for the issuer's securities
, Which of the following is TRUE regarding the restricted period in connection with a merger?
correct answers Is it based only on the target's shareholder vote
All of the following would be considered compensation to the syndicate EXCEPT correct
answers issuer expenses
All the following are exempt from the registration requirements of the Securities Act of 1933
except correct answers AAA rated corporate bonds
A Regulation A+ exemption applies to correct answers a new issue of $50,000,000 or less
Company O enters into a Definitive Agreement to purchase Company N. Company O plans to
execute the merger via a two-step merger, beginning with a tender offer to Company N
shareholders, including the CEO. Contingent on the closing of the deal, the CEO will also be
receiving a compensation package for taking on a new role at Company O. This compensation
package would be permitted only with approval from correct answers a majority of Company O's
compensation committee
Under Rule 10b-18 which of the following is TRUE regarding the maximum number of shares
an issuer can repurchase in any given day to be within the SEC's safe harbor? correct answers Up
to 25% of the stock's ADTV over the prior four weeks
An investment bank (a FINRA member) is rendering a fairness opinion in a merger transaction.
The firm will be paid a base fee of $750,000 for writing the opinion, whether or not the deal
closes. It will also receive a contingent bonus of $250,000 if the deal closes. Is this fee structure
allowed, and if so what part of compensation must be disclosed? correct answers Yes, the
structure is allowed and the contingent bonus must be disclosed
ABC, a public company is making an all-cash offer to acquire the shares of XYZ, another public
company. Acceptance or rejection of the offer depends on a majority vote of XYZ's shareholders.
Which documents must be delivered to XYZ's shareholders? correct answers A proxy only
When a company files for Chapter 11 bankruptcy, which of the following is true regarding the
Board of Directors? correct answers The board remains intact
When a partnership dissolves, what is the proper order for settling accounts with the following
groups? correct answers IV. Secured lenders
III. General creditors
II. Limited partners
I. General partners
If a SIPC member corporation were to go bankrupt, the trustee appointed would be responsible
for all of the following EXCEPT correct answers supervising the distributions for commodity
accounts
