Series 79: Chapter 5 Practice Questions

Chapter 5 Practice Questions

1. 1. A well-known seasoned issuer must meet which of the following requirements?
2. I. Has a worldwide public float of at least $1 billion in common equity or has issued at least $1 billion in nonconvertible securities other than common equity in prior three years
3. II. Is not a subsidiary of another corporation
4. III. Is eligible to use Form S-3 or Form F-3
5. IV. Is not a registered investment company
6. A. I and II only
7. B. II and III only
8. C. III and IV only
9. D. I and III only
10. 2. Unstable Isotopes Inc. is a seasoned issuer planning a follow-on public offering. Under what circumstances may Unstable Isotopes or its distribution participants use a free writing prospectus?
11. A. At any time after the registration statement has been filed, regardless of whether the FWP is preceded or accompanied by or links to a preliminary prospectus
12. B. At any time after the registration statement has been filed, provided the FWP is preceded or accompanied by or links to a preliminary prospectus
13. C. Either after the registration statement has been filed or before the registration statement has been filed, if certain SEC conditions are met
14. D. At any time after the registration is declared effective, provided the FWP is preceded or accompanied by or links to the final prospectus
15. 3. MegaHuge corporation is a seasoned issuer. MegaHuge files a shelf registration statement. Assuming the information in the registration statement does not change materially, and MegaHuge does not file a new registration statement at any time after it files the shelf registration, for how long after the effective date may MegaHuge offer shares under the shelf registration?
16. A. One year
17. B. Two years + 90 days
18. C. Three years
19. D. Three years + 180 days
20. 4. Each of the following communications qualifies for an exemption or safe harbor fr