Series 82: Exercise

Exercise

Answer true or false.

1._____ Because tombstone ads must avoid being construed as an offer, they must not include the price of the security.

2._____ “Gun-jumping” refers to making a written offer during the cooling-off period without distributing a prospectus.

3._____ Generic advertisements are so called because they provide general information only and never state the name of the broker or dealer sponsoring the communication.

4._____ An issuer may distribute an issuer-specific research report about a security without it being considered an offer if the issuer is a well-known seasoned issuer.

5._____ The customer’s consent is required in order for a company to send an electronic copy of a prospectus.

Answers

1. False. While tombstone ads must not make an offer, they may still contain the price or price range of a security.

2. True. Any written offers made during a cooling-off