Ch2 Deck 18

Question 1

daily records obtaining itemized reports of all purchases and sales of securities

Answer 1

blotters

Question 2

blotters must be kept for

Answer 2

six years

Question 3

What section of the securities act of 1934 regulates registration on the secondary market?

Answer 3

section 12

Question 4

To register a security on the secondary market under section 12 of the securities act of 1934, must submit balance sheets of business for

Answer 4

last three years

Question 5

form S-4 is used with

Answer 5

exchange offers

Question 6

Rule 14d-10 Equal Treatment of Security holders says that a tender offer must be open to all security holders of the class, and the consideration paid to any security holder is

Answer 6

the highest consideration paid to any other security holder

Question 7

Rule 14d-10 Equal Treatment of Security holders provide a safe harbor during a tender offer for certain payments to executives and negotiation of employee agreements if

Answer 7

the arrangement is approved by the target’s compensation committee or board of directors that performs compensation committee functions

Question 8

short sales can only be done on accounts of this type

Answer 8

margin accounts (because they require borrowing securities from the broker dealer)

Question 9

Form 1-A is an abbreviated registration form used for

Answer 9

Regulation A registrations (instead of S-1)

Question 10

Under NASD Rule 2711, if a member terminates its research coverage of a company, it must make

Answer 10

notice of the termination

Question 11

Under NASD Rule 2711, if a member terminates its research coverage of a company, it must make available

Answer 11

a final research report using same means of dissemination it normally uses to provide customer with research reports on the company

Question 12

Under NASD Rule 2711, if a member terminates its research coverage of a company, it must give a final report comparable to

Answer 12

previous research reports

Question 13

Under NASD Rule 2711, if a member terminates its research coverage of a company, it must give a final report that includes a final

Answer 13

recommendation or rating

Question 14

Under NASD Rule 2711, if a member terminates its research coverage of a company, it must issue a comparable final report UNLESS

Answer 14

it is impracticable (research analyst is gone or member terminates coverage of industry)

Question 15

Under NASD Rule 2711, if a member terminates its research coverage of a company, if it is impracticable to produce a final recommendation or rating, then

Answer 15

the final research report must disclose member’s rationale for decision to terminate coverage