Series 24 STC Chapter 1
SRO - correct answer ✔✔Self-Regulating Organization
REIT - Real Estate Investment Trust - correct answer ✔✔At least 75% of gross income derived solely from
real estate rent or interest on mortgages
95% of gross income derived from real estate activities or dividends and interest
Must be a trust
Must distribute at least 90% of income. Shareholders responsible for tax
Nontraded REIT - correct answer ✔✔Offers limited liquidity
Provide valuations within 18 months after cessation
ADR - correct answer ✔✔Claim to foreign securities
Sponsored = pay cost
Reverse Convertible Security - correct answer ✔✔short-term notes issued by banks and bd's which pay a
coupon rate above prevailing market rates.
SEC Reporting Company - correct answer ✔✔Issuer has securities listed on a national securities
exchange / publicly traded corporation total assets >$10,000,000 and more than 500 shareholders
PIPE - correct answer ✔✔Private Investment in Public Equity
Distribution of restricted securities to small group of accredited investors
Securities Act of 1933 - correct answer ✔✔Requires nonexempt securities to be registered with SEC.
Attempts to prevent fraud in the sale of new issues by requiring investors be provided with enough
relevant information about the offering to make an informed decision
SRO - correct answer ✔✔Self-Regulating Organization
REIT - Real Estate Investment Trust - correct answer ✔✔At least 75% of gross income derived solely from
real estate rent or interest on mortgages
95% of gross income derived from real estate activities or dividends and interest
Must be a trust
Must distribute at least 90% of income. Shareholders responsible for tax
Nontraded REIT - correct answer ✔✔Offers limited liquidity
Provide valuations within 18 months after cessation
ADR - correct answer ✔✔Claim to foreign securities
Sponsored = pay cost
Reverse Convertible Security - correct answer ✔✔short-term notes issued by banks and bd's which pay a
coupon rate above prevailing market rates.
SEC Reporting Company - correct answer ✔✔Issuer has securities listed on a national securities
exchange / publicly traded corporation total assets >$10,000,000 and more than 500 shareholders
PIPE - correct answer ✔✔Private Investment in Public Equity
Distribution of restricted securities to small group of accredited investors
Securities Act of 1933 - correct answer ✔✔Requires nonexempt securities to be registered with SEC.
Attempts to prevent fraud in the sale of new issues by requiring investors be provided with enough
relevant information about the offering to make an informed decision
