Series 7 Exam Practice Test 1: Underwriting Securities

1. Which of the following underwriting agreements specify that any unsold securities are retained by the underwriters?

2. The cooling off period for a new issue lasts approximately how many days?

3. A Regulation D offering is an offering of

4. Which of the following are exempt securities?

I. Municipal bonds

II. Securities issued by savings institutions

III. Variable annuities

IV. Commercial paper with an initial maturity of 365 days or less

5. An investor has held shares of ABC restricted stock for over one year. ABC has 3,000,000 shares outstanding. The most recently reported weekly trading volumes for ABC are as follows:

Week EndingTrading Volume
July 3130,000 shares
July 2440,000 shares
July 1725,000 shares
July 1035,000 shares
July 340,000 shares

What is the maximum number of shares the investor can sell under Rule 144?

6. If a new issue will be offered to the public at $14.00, all of the following are acceptable stabilization bids EXCEPT

7. A final prospectus includes

I. the offering price

II. the underwriter's spread

III. the delivery date

8. All of the following are types of state registration EXCEPT

9. According to the Securities Act of 1933, sales of which of the following is an exempt transaction?

10. A syndicate is underwriting a new stock offering in an undivided account. The offering is 5,000,000 shares, and a member of the syndicate is responsible for selling 500,000 shares. After selling the entire 500,000 shares of the allotment, the manager reports there are 1,500,000 shares left unsold by other members of the syndicate. How many shares is the syndicate member responsible for selling at this point?

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