Which TWO of the following statements are true concerning a company that becomes delisted from the NYSE or NASDAQ? I. It may be quoted on the OTC Bulletin Board II. It may only be quoted in the OTC Pink market. III. Firm quotes would no longer be available. IV. Fir quotes may still be available.
(I and IV) A company that fails to meet the maintenance requirements of securities listed on the NYSE or NASDAQ will become delisted. When this occurs, the company may be quoted (but not listed) on the OTC Bulletin Board or in the OTC Pink market (also called the Pink Sheets). Quotes on the OTCBB or the electronic Pink Sheets generally are firm quotes. Firm quotes obligate the offering dealer to buy or sell the amount quoted.
A business that is traded on an exchange, owns properties in its portfolio, and makes mortgage loans to developers is an example of a: a. Closed-end investment company b. Exchange-traded notes c. Hybrid REIT d. A direct participation program
(c) A Real Estate Investment Trust (REIT) that owns properties (office buildings) and also makes loans to real estate developers is a Hybrid REIT. These business structures are a combination of an equity REIT and a mortgage REIT.
Which of the following statements BEST describes Exchange-Traded Notes (ETNs)? a. ETNs are debt instruments linked to the performance of a commodity, currency, or index. b. ETNs are equity securities that pay a large dividend. c. ETNs are mutual funds that invest in debt instruments. d. ETNs are equity securities that represent ownership of a securities exchange.
(A) Exchange-traded notes (ETNS) are a type of unsecured debt security. This type of debt security differs from other types of fixed-income securities since ETN returns are linked to the performance of a commodity, currency, or index minus applicable fees. SImilar to ETFs, ETNs are traded on an exchange, such as the NYSE, and may be purchased on margin or sold short. Investors may also choose to hold the debt security until maturity.
The IPO of Symphony Music was registered on July 1, 20XX. If the manager of the new issue wants to publish a research report on Symphony Music, what would be the earliest date that it could publish the report? a. July 11, 20XX b. August 1, 20XX c. August 11, 20XX d. September 1, 20XX
(c) The earliest date on which a manager or comanager of Symphony Music could publish a research report after the IPO (on July 1, 20XX) is August 11, 20XX. FINRA rules incorporate quiet periods that follow an IPO and secondary offering, during which time the investment banking client may not be the subject of a research report nor may a research analyst make a public appearance regarding securities that are covered by the quiet period. The quiet period is 40 days.
A municipal finance professional (MFP) residing in New Jersey would be permitted to make which of the following political contributions? a. A $350 contribution to a New Jersey gubernatorial candidate b. A $200 contribution to a Philadelphia, PA mayoral fundraiser c. A $250 contribution to the mayor's reelection committee in her hometown d. None of the above
(C) MFPs are limited to a maximum contribution of $250 per official, per election in which they are entitled to vote. An MFP would trigger the ban by making contributions in localities where she is not eligible to vote.
When an investor purchases a municipal fund security, she will pay a sales load that is stated in the official statement. Which TWO of the following statements are TRUE regarding an advertisement for this municipal fund security? I. The minimum sales load should be stated in the ad. II. The maximum sales load should be stated in ad. III. Sales charges may not be reflected in performance data. IV. Sales charges may be reflected in performance data.
(II and IV) A 529 College Savings Plan is a type of municipal fund security. If sales loads are depicted in a municipal fund securities advertising, the maximum amount of the sales charge should be stated. Additionally, sales charges may be reflected in the performance data of the investment and, if they are not, a statement to that effect should be made.