Series 10 Exam Question 61: Answer and Explanation

Question: 61

Regarding a municipal bond underwriting, which of the following is a violation?

  • A. An MSRB member that acts as a financial adviser for the issuer submits a competitive bid with the issuer's approval.
  • B. An MSRB member that acts as the adviser to the issuer offers the new bonds to a list of current bondholders obtained from the issuer.
  • C. An MSRB member who is a financial adviser to an issuer terminates the relationship to submit a negotiated bid.
  • D. An MSRB member that had a financial advisory relationship with the issuer discloses its total compensation for a negotiated underwriting.

Correct Answer: B

Explanation:

A firm may never use the information it obtains from an issuer to solicit sales or new business.

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