Chapter 8 Practice Questions
1. What is a delaying amendment?
A. Changes made to a registration statement in response to SEC comments
B. A notice added by the SEC to a registration statement that it has decided not to approve
C. An amendment filed with a registration statement that constantly pushes off the effective date by 20 calendar days
D. A disclosure in the preliminary prospectus stating that free writing prospectuses may be used during the cooling-off period
2. What is the minimum cooling-off period that must elapse before a registration statement becomes effective?
A. 20 business days
B. 20 calendar days
C. 10 business days
D. 10 calendar days
3. During the cooling-off period, syndicate members may do all of the following, except:
A. Publish tombstone ads announcing the new issue
B. Take orders from customers
C. Send a preliminary prospectus to qualified investors
D. Take indications of interest from customers
4. 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?
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
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
C. Either after the registration statement has been filed or before the registration statement has been filed, if certain SEC conditions are met
D. At any time after the registration is declared effective, provided the FWP is preceded or accompanied by or links to the final prospectus
5. The lead underwriter in a public offering typically assists with a road show for the offering in each of the following ways, except:
A. Supplying an analyst to answer investor questions