Series 99: Exercise

Exercise

Answer the following questions.

1. 1. How can a restrictive legend be removed from restricted securities?
2. A. A transfer agent can remove it with the written consent of the issuer.
3. B. A transfer agent can remove it with the written consent of the SEC.
4. C. The SEC can remove it after legal arbitration.
5. D. It cannot be removed.
6. 2. Securities that have been acquired from an issuer but have not been registered with SEC might be called all of the following except:
7. A. Unregistered securities
8. B. Legend stock
9. C. Restricted shares
10. D. Rolling stock
11. 3. Michelle Hicks is an affiliate who wants to sell 10,000 shares of her control stock. Michelle has held the shares for four years. Michelle must:
12. A. Not sell the control stock, as she must wait one more year to do so
13. B. Only sell the stock through a private placement
14. C. Sell the control stock through a broker-dealer to avoid filing a notice with the SEC
15. D. Report the sale of control stock to the SEC by filing Form 144
16. 4. Instructing a broker-dealer to ______________________ results in stock shares having a nominal owner and a beneficial owner.
17. A. Hold in street name
18. B. Transfer and ship
19. C. Buy and hold
20. D. Transfer and hold
21. 5. The registrar is responsible for which of the following?
22. A. Recording changes of ownership
23. B. Filing the corporate charter
24. C. Overseeing/auditing the transfer agent
25. D. Selling mutual fund shares to large institutional buyers

Answers

1. 1. A. Almost all restricted securities will come with a certificate that has a “restricted” legend stamped on it. No securities with this restricted legend can be sold to the public unless the stamp has been removed, even if the conditions of Rule 144 are met. Only a transfer agent can remove the stamp with the written consent of the issuer.
2. 2.