Series 79 - Practice Exam Questions with Correct
Answers
companies 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
quick ratio Correct Answer-current assets - inventories / current
liabilities
FINRA Rule 2269 requires members acting as brokers or dealers to give
customers a written notice of interest for which of the following
transactions? Correct Answer-I. Primary offerings
II. Secondary distributions
III.Securities in accounts advised for a fee
underwriting spread example Correct Answer-The total spread is the
manager's fee of $.25 plus the $.85 full takedown, for a total of $1.10.
The underwriting fee is a component of the full takedown, so is not
taken into account in the calculation. As the syndicate manager, Jones
, Securities receives the full spread for the 1 million shares it sells and the
manager's fee of $.25 for the remaining 4 million shares:
1 million shares x $1.10 = $1.1 million
4 million shares x $.25 = $1.0 million
Total = $2.1 million
qualifications for QIBs Correct Answer-The two most important
attributes that make QIUs truly independent are: 1) lack of a conflict of
interest in the offering or involving the issuer; and 2) previous
experience in at least three similar public offerings in the preceding three
years.
The priority status of debt instruments at the same legal entity refers to
which of the following? Correct Answer-contractual subordination
In an auction process, a re-trade occurs when Correct Answer-bidder
rebids at lower price
For purposes of determining whether it is a large accelerated filer or an
accelerated filer, when does a company calculate its worldwide market
cap? Correct Answer-at the end of the second quarter of the fiscal year
Answers
companies 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
quick ratio Correct Answer-current assets - inventories / current
liabilities
FINRA Rule 2269 requires members acting as brokers or dealers to give
customers a written notice of interest for which of the following
transactions? Correct Answer-I. Primary offerings
II. Secondary distributions
III.Securities in accounts advised for a fee
underwriting spread example Correct Answer-The total spread is the
manager's fee of $.25 plus the $.85 full takedown, for a total of $1.10.
The underwriting fee is a component of the full takedown, so is not
taken into account in the calculation. As the syndicate manager, Jones
, Securities receives the full spread for the 1 million shares it sells and the
manager's fee of $.25 for the remaining 4 million shares:
1 million shares x $1.10 = $1.1 million
4 million shares x $.25 = $1.0 million
Total = $2.1 million
qualifications for QIBs Correct Answer-The two most important
attributes that make QIUs truly independent are: 1) lack of a conflict of
interest in the offering or involving the issuer; and 2) previous
experience in at least three similar public offerings in the preceding three
years.
The priority status of debt instruments at the same legal entity refers to
which of the following? Correct Answer-contractual subordination
In an auction process, a re-trade occurs when Correct Answer-bidder
rebids at lower price
For purposes of determining whether it is a large accelerated filer or an
accelerated filer, when does a company calculate its worldwide market
cap? Correct Answer-at the end of the second quarter of the fiscal year
