SIE Knowledge of Capital Markets Question 27: Answer and Explanation

Question: 27

MSRB Rule G-32 – Disclosures in Connection with Primary Offerings requires reporting if the municipality issuing bonds has chosen to give priority to which of the following investors?

• A. Ordinary
• B. Retail
• C. Accredited
• D. Institutional

Correct Answer: B

Explanation:

B: Choice B is correct because MSRB Rule G-32 requires reporting if retail investors are given priority by the municipality issuing the bonds. Choice A is incorrect because ordinary is not a regulatory category of investors. Choices C and D are incorrect because the rule does not require reporting if the municipality gives priority to accredited or institutional investors.