- Study guides, Class notes & Summaries

Series 79 - Chapter 7 Discounted Cash Flow Analysis - correct answer Fundamental valuation methodology derived from the present value of its projected free cash flow (FCF) Free Cash Flow - correct answer Utilized in DCF and derived from a variety of assumptions and judgments about its expected financial performance, including sales growth rates, profit margins, capital expenditures, and net working capital (NWC) Intrinsic Value - correct answer Valuation implied for a target by a DCF. As ...

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8 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 - Exempt Transactions ( Reg A - correct answer Mini IPO that bypasses SEC reporting and auditing financials - Form 1A - Tier 1: $20 mill size cap (in 12 month period) - Tier 2: $75 mill size cap (in 12 month period) Reg D - correct answer Private Placement -504 - $10 mill (max size) **-506b - 35 non-accred** -506c - 0 non-accred, but can solicit general public - Non-accred investors are required to recieve circular unless it's under 10 mill or 504 what's a private pla...

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2 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 - Exempt TransactionsRule 144 - correct answer Defines the conditions under which securities that are acquired through an exempt transaction, or are restricted from resale for other reasons, can be sold. Rule 144A - correct answer Makes it easier for companies, both domestic and international, to raise money in U.S. Capital Markets. Rule 145 - correct answer Clarifies that business combinations are considered "offers to sell" securities, subject to registration requirements, wh...

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2 pages

Written in 2023/2024

Grade A+

BravelRadon

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 re...

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10 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 - Full EXAM (Missed)A company that has high operating leverage would typically have ________________. Choose the BEST answer. Lower fixed costs Lower debt Higher fixed costs Higher debt - correct answer Higher Fixed Costs A company that has high operating leverage has high fixed costs and low variable costs. Fixed costs are assets such as property, plant, and equipment that don't vary with the amount of sales. Variable costs are costs that increase with increasing sales. A co...

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23 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 - Key Concepts Regulation A/A+ - correct answer - Mini IPO - Form 1A - Offering Circular in place of a prospectus Tier 1 Reg A+ - correct answer Up to $20mm public capital raised per year Tier 2 Reg A+ - correct answer Up to $75mm public capital raised per year Section 4(a)(2) and 4(a)(5) of 1933 act - correct answer Private Placement: Allow an issuer to sell unregistered securities privately Reg D Safe Harbor - Rule 504 - correct answer Max Deal Size: $10mm - Unlimited...

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4 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 - Key Forms and Filings13E-3 - correct answer Going Private, filed concurrently with a tender offer, registration statement, or other privatization document. Form 3 - correct answer Individual becomes corporate insider, filed within 10 business days Form 4 - correct answer Corporate Insider changes holdings, filed within 2 business days Form 5 - correct answer Corporate insider reports transactions in securities not in public market, filed within 45 calendar days of fiscal yea...

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2 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 - Order the following in terms of credit risk: 1. GSEs 2. Gov't Agency MBS / Treasury securities 3. Private label MBS - correct answer 1. Gov't Agency MBS / Treasury Securities - backed by the full faith and credit of the US gov 2. GSEs (Fannie, FNMA and Freddie, FHLMC) - not backed by the full faith and credit of the US gov but have special authority to borrow from the US Treasury, an implied guarantee 3. Private label MBS - have no government backing Ginnie Mae - correct ...

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12 pages

Written in 2023/2024

Grade A+

BravelRadon

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 ...

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8 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 - Questions A person who has not been registered for the past three years has now become newly registered with another broker-dealer. With regard to Regulatory Element, this representative - correct answer Must take the appropriate module as if subject to the program for the first time Must complete Regulatory Element within a 120-day period that begins with the second anniversary of their registration Key Representations ("Reps") and Warranties made by a seller in a definitiv...

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16 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 - Rules and Regulations Form U4 - correct answer When registering with a broker-dealer, all RRs are required to complete this Uniform Application for Securities Industry Registration which discloses: 10-year employment history Any felony convictions, convictions for securities-related misdemeanors, or actions taken by a U.S. or foreign securities regulator that have occurred within the past 10 years − All of these make a person subject to Statutory Disqualification or SD By...

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8 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 - Solomon - Debt SecuritiesTrust Indenture Act 1939 - correct answer Any Corporation that issues over 5MM over 1 year in Debt Securities must issue under an Indenture or Contract Indenture - correct answer -AKA Contract for Bond issue over 5MM over 1year -Company must appoint outside Trustee -If Co. goes Bankrupt the role of the trustee is to recoup the bondholder's money Bond Rating Table - correct answer -Levels AAA; AA; A; BBB; BB -Notches: + and - Investment Grade Bond...

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4 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 Exam Review QuestionsA person who has not been registered for the past three years has now become newly registered with another broker-dealer. With regard to Regulatory Element, this representative... - correct answer 1) Must take the appropriate module as if subject the program for the first time 2) Must complete the Regulatory Element within a 120-day period that begins with the second anniversary of their registration NOTE: - have to re-do if you have left the securities indu...

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23 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 Flash CardsU5 Form? - correct answer Generated when you quit or resign from a securities firm. Must be reviewed with new employer within 60 days of filing U4 application U4 Form? - correct answer Must be filed to register with any SRO and be filed with the Central Registration Depository. Disqualified from U4 if any of these apply to you: 1. Fasle reports. 2. Bribery 3. Perjury 4. ANY other felony. Banned for 10 years and needs waiver to be hired Who must register f...

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21 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 FormulasCurrent Yield - correct answer Annual Interest / Market Price Conversion Ratio - correct answer Par Value / Conversion Price Parity Price of a Bond - correct answer MV (Stock) x Conversion Ratio Parity Price of a Stock - correct answer MV (Bond) / Conversion Ratio Equity Value - correct answer Total Shares Outstanding x Stock Price = Enterprise Value - Debt + Cash Enterprise Value - correct answer Equity Value + Debt + Preferred Stock + Noncontrolling Interest ...

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5 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 Investment Banking Front-Running - correct answer Trading ahead of client orders Painting the Tape - correct answer Creating a misleading appearance of trading Pegging - correct answer Manipulative activity used to keep a price from falling Capping - correct answer Manipulative activity used to keep a price from rising Insider Trading Criminal Penalties - correct answer Individuals: max fine of $5m, 20 yrs Corporation: max fine of $25m Insider Trading Civil Penalties -...

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37 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 Key ConceptsSection 11 DD Defense - correct answer Any untrue statements were believed to be true at the time (prudent man, NO need for attorney comfort letter) Can't be used by issuer and non-consenting accountants Signees on registration statement - correct answer 1. Issuer's CEO 2. Issuer's CFO 3. Issuer's Controller 4. Majority of the Board Gun-Jumping - correct answer Any disclosure of information in the 30 DAYS BEFORE an issuer decides to IPO or file a registrat...

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34 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 Key ConceptsWhat is the name for the definitive proxy? - correct answer DEF14A What is the name for the preliminary proxy? - correct answer PRE14A When does preliminary proxy need to be filed to SEC relative to definitive proxy? - correct answer PRE14A must be filed with the SEC at least 10 calendar days prior to DEF14A Who does definitive proxy need to be sent to, and when? - correct answer DEF14A must be sent to SEC and shareholders at least 20 calendar days before sharehold...

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10 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 Knopman Marks deferred tax asset or liability? Acceleration of revenue for accounting purposes - correct answer Deferred tax liability Source or use of cash? Decrease in accrued liabilities - correct answer Use of Cash Source or use of cash? Improvement in net working capital - correct answer Use of cash Purpose of a Schedule 13F - correct answer A 13F is a quarterly filing by Institutional Investment managers to disclose long equity positions Disclosure document used to g...

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88 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 Knopman Marksfalling interest rates - correct answer an investor who expects interest rates to fall would want a long duration zero coupon bond bond pricing - correct answer if an issuer is disappointed with the amount raised in a debt offering it could increase the interest rate i.e. +200bps to +250 bps bond spreads - correct answer High-yield bonds have wider spreads than investment grade or Treasury bonds yield-to-worst - correct answer bond trade confirmation must include ...

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45 pages

Written in 2023/2024

Grade A+

BravelRadon