Series 51: Chapter 6 Practice Questions

Chapter 6 Practice Questions

1. 1. The Time of First Execution is:
2. A. The deadline for sending a commitment wire
3. B. The time the issuer publicly announces its selection of an underwriter
4. C. Required to be at least three business hours after all required information has been transmitted to the MSRB and DTC reporting facilities
5. D. The time the underwriter plans to execute its first transactions for the new issue
6. 2. Which of the following statements about an underwriter’s disclosure obligations to customers of municipal securities transactions is correct?
7. A. Underwriters must deliver a copy of the official statement to their customers no later than the settlement of the transaction.
8. B. In a negotiated sale, the underwriter has no additional disclosure obligations.
9. C. In the sale of a municipal fund security, underwriters may deliver an official statement to a customer by informing them that it is available on EMMA.
10. D. If an official statement is not being prepared, the underwriter has no obligation to disclose this.
11. 3. All of the following statements about advance refunding are correct except:
12. A. Advance refunding documents must be submitted to EMMA.
13. B. Advance refunding is a process where the issuer of refunding bonds seeks to lower its interest payments by paying off previously issued bonds with newly issued bonds.
14. C. Underwriters must submit the required information related to advance refunding no later than ten days after the closing date.
15. D. A primary offering may be used to advance refund outstanding municipal securities.
16. 4. If a new issue is a private placement, sold to no more than 35 sophisticated securities investors:
17. A. No underwriter is required.
18. B. It is exempt from filing an official statement with EMMA.
19. C. It is considered a remarketing of municipal securities.
20. D. The underwriter is not requir