- Study guides, Class notes & Summaries

Series 79 MathCurrent Yield - correct answer Annual Interest / Current Market Price Conversion Ratio - correct answer $100 Par Preferred / Conversion Price Parity Price of a Bond (Preferred) - correct answer Stock Price * conversion ratio Parity Price of a Stock (Preferred) - correct answer MV of Bond / conversion ratio Equity Value - correct answer Shares outstanding * stock price OR Enterprise value - Debt - Preferred stock - NCI + Cash Enterprise Value - correct answer Market...

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4 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 Practice Exam 1The role of the specialists (Designated Market Maker) is most closely associated with - correct answer NYSE The NYSE relies on specialists (also referred to as designated market makers) to match buyers and sellers. market makers facilitate trades on the Nasdaq and OTCBB What is a selected dealer agreement and what are the roles of the participants - correct answer A selected dealer agreement specifies the terms between the managing underwriter and selling group mem...

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5 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 Practice Exam QuestionsWhen subject to a restricted period under Regulation M, a firm seeking an excused withdrawal must make this request when - correct answer 1 busines day prior to the 1st completed trading session of restricted period When can PIPE shares be resold - correct answer After SEC clears a resale registration statement Explain WIKIs with resistration fees and SEC review - correct answer The can "pay as you go" and don't review SEC review When do buyers typica...

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16 pages

Written in 2023/2024

Grade A

BravelRadon

Series 79 QuestionsFor an EGC, when can research be published? - correct answer Immediately after the effective date Can XYZ company preview an equity research report written by an investment bank about itself? - correct answer Equity research may be reviewed by the subject company solely for verification of facts. The draft submitted to the company must omit the research summary, rating, or price target. Legal / compliance must review the full report before it is submitted to the target comp...

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47 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 SupplementForm 3 - correct answer Individual becomes an insider, filed within 10 days Form 4 - correct answer Corp insider changes holding, filed within 2 business days Form 5 - correct answer Corp insider reports transactions in sec's not in public market, filed within 45 calendar days of fiscal year end 13D - correct answer Filed for greater than 5% ownership and active ownership, 10 calendar days after initial transaction then after any changes greater than 1% 13G - cor...

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4 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79, Chapter 07 - Discounted Cash Flow AnalysisIntrinsic Value - correct answer Fundamental value implied by DCF (as opposed to current market value) (7-217) Free Cash Flow Calculation - correct answer FCF = (EBIT) - (Taxes: at marginal rate) = (EBIAT) + (D&A) - (Capex) - (increase in net working capital) (7-223) Net Working Capital - correct answer (current assets) - (current liabilities) = (AR + Inventory + prepaid expenses and other current assets) - (AP + Accrued Liabilities + Ot...

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3 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79, Chapter 13 - Private PlacementsWhat are the qualifications for an offering to be considered a Private Placement? - correct answer (1) sophisticated investors, (2) ability to bear the investment's economic risk, (3) parties must have access to the type of information normally provided in a prospectus, (4) parties must agree not to resell the securities to the public. (13-395) PPM - correct answer Private Placement Memorandum - the disclosure document prepared for circulation to pot...

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2 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79, Chapter 14 - Exempt Transactions Non-exempt transactions - correct answer all public offering transactions that are subject to the SEC filing and registration process defined under the Securities act of 1933. (14-403) Exempt Transactions - correct answer securities that are legally allowed to be offered and sold WITHOUT registration with the SEC. (14-403) Five types of Exempt Securities - correct answer (1) US Government Securities, (2) Municipal Bonds, (3) Securities issued by...

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6 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79, Fact Sheet A company has reported risk factors on the annual 10-K, and there are material changes to those risk factors. What does the company do? - correct answer Report any material changes on the next 10-Q. (1) IRS Rule 388(h)(10 - correct answer Allows a purchaser to treat an equity acquisition as an asset sale for tax purposes. The purchaser would benefit from a stepped up basis as a result. (2) An acquirer pays a golden parachute to an executive of a target company in exc...

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19 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79Subchapter C Corp - correct answer Which does not pass through gains and losses To qualify as a REIT - correct answer a corporation must be organized under state laws in the US and have at least 100 shareholders by the second taxable year. It also must meet a 50/50 test for shareholder ownership, with five or fewer shareholders not owning more than 50% of its stock during the last half of the taxable year. A REIT will only pay taxes on earnings that we not paid out as dividend to...

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40 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79Securities Act of 1933 - correct answer Requires investors to receive significant and material nonpublic information concerning securities being offered for public sale; prohibits deceit, misrepresentations, and other fraud in the sale of securities to the public Securities Exchange Act of 1934 - correct answer Regulates US financial markets and their participants (i.e. the secondary market); prohibits fraud in secondary-market transactions Auction marketplace (include example) - ...

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45 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79Rule 144 - correct answer Provides a safe harbor for permitting the sale of restricted and affiliate securities, without requiring registration Market Out Clause - correct answer Within an underwriting agreement, describes the circumstances under which an underwriter can cancel a purchase agreement without penalty Where are syndicate expenses deducted from? - correct answer The underwriting fee How long before do you need to register for an IPO to be unrestricted? - correct ans...

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20 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 The letters NAV stand for - correct answer Net asset value refers to an investment company's total assets less its total liabilities. Mutual funds and unit investment trusts calculate their NAV every business day, often after market close. Closed-end funds are not subject to the requirement to calculate NAV on a daily basis. All of the following are non-marketable U.S. Government securities EXCEPT - correct answer Treasury Bills trade actively on the secondary market. SLGS, Series...

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18 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79an investment banker representative brings home a deal file and leaves it on her living room table. her husband reads the deal file and trades on the information. in this situation, who is liable? - correct answer the husband is liable for violating the duty of trust. he knew that it was insider info. an employee of a FINRA member firm is accused of insider trading. how can the firm avoid liability? - correct answer the firm can avoid liability if it can demonstrate that they had ade...

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13 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79enterprise value - correct answer equity value + total debt + preferred stock + non-controlling interest - cash OR equity value + net debt + preferred stock + non-controlling interest equity value - correct answer shares outstanding x share price earnings per share (EPS) - correct answer net income / common shares outstanding current yield - correct answer dividend per share / stock price OR total annual dividends / equity value dividend payout - correct answer annua...

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7 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 10-Ks - correct answer Non-accelerated filers: 90 days Accelerated filers: 75 days Large accelerated filers: 60 days 10-Qs - correct answer Non-accelerated filers: 45 days Accelerated filers: 40 days Large accelerated filers: 40 days 8-K - correct answer Must be filed WITHIN 4 BUSINESS DAYS after triggering event Schedule 13-D (D comes before G) - correct answer A person, or a group of persons acting together, who directly or indirectly acquires beneficial ownersh...

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94 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79equity value - correct answer Shares outstanding * Share price enterprise value - correct answer equity value +debt-cash margin - correct answer compares a company's earnings to its revenue or sales Gross Profit Margin - correct answer Gross profit/sales revenue x 100 Operating Margin - correct answer Operating Income (EBIT) / Sales Net Income Margin - correct answer Net Income/Sales Operating Income - correct answer gross profit - operating expenses earning per sh...

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27 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 Primary Markets - correct answer Sale of securities directly from issuers to investors. IPO; weekly auction of treasury bills Secondary Markets - correct answer exchange of existing securities between investors. NYSE, etc Broker-Dealer - correct answer Broker is defined as any person engaged in the business of effecting transactions in securities for the account of others. Dealer is defined as any person engaged in the business of buying and selling securities for its own accoun...

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34 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79 Private placements can be sold to (Reg. D): - correct answer Unlimited number of accredited investors, and up to 35 non-accredited investors Accredited investors - correct answer Officers/directors of an Issuer Financial institutions (regardless of their assets) Trusts & Business Partnerships with $5mm+ in assets Individuals with $200k+ in income or $1mm+ of net worth What is the threshold for defining a large accelerated filer? - correct answer $700mm worldwide non-affiliate...

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40 pages

Written in 2023/2024

Grade A+

BravelRadon

Series 79-KnopmanFinancial markets - correct answer Collection of buyers and sellers that trade assets including equities, debt, currencies and derivatives Functions of capital markets - correct answer Raising capital, transferring risk, trade Factors in a market's performance - correct answer Efficiency, liquidity, continuity, marketability, timely and accurate information Capital markets - correct answer Markets for stocks (equity) and bonds (debt) Primary markets - correct answer...

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22 pages

Written in 2023/2024

Grade A+

BravelRadon