Series 82: Exercise

Exercise

Answer the following questions.

1. 1. Under Regulation D, non-accredited investors must be given access to the same organizational and financial information concerning the issuer as would appear in a(n):
2. A. Preliminary prospectus
3. B. Underwriting agreement
4. C. SEC registration statement
5. D. PPM
6. 2. A FINRA member is selling securities in a private placement and would like to be exempt from filing a PPM, term sheet, or other offering document. Under FINRA Rule 5123, which of the following entities would the FINRA member not be able to sell to?
7. A. Bank
8. B. Non-accredited investor
9. C. Institutional account
10. D. Investment company
11. 3. Which of the following are you unlikely to find in a PPM?
12. A. Outline of the company’s marketing campaign
13. B. Description of the issuer’s business
14. C. Explanation of the company’s capital and management structure
15. D. Description of the securities being offered

Answer true or false.

1. 4. _____ An issuer of a private placement will compensate its employees for selling its securities.

Answers

1. 1. C. The information given to an investor must be the same information that would appear in an SEC registration statement. Companies often fulfill this requirement by providing the investor with a PPM.
2. 2. B. Private placements are exempt from filing a PPM, term sheet