Bisys Series 6 2
Terms
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- A securities firm that specializes in helping other business firms obtain the money they need.
- Investment Banking Firm
- What are the two types of agreements that would be offered between the Investment Banker and the company?
-
1)Purchase agreement
2) Best Effort agreement - If it's the very first time a corp. is making a public offering of stock this is called an _______ ________ ________.
- Initial Public Offering
- When a large block of outstanding stock or treasury stock is being sold it is known as a ______ offering or distribution.
- Secondary offering
- I stock offering that has never before been offered (unissued) is known as a _______ offering.
- Primary
- How many primary distributions can a company have?
- Each time they need additional capital.
- How many IPOs can a company offer?
- 1
- When a corporation makes a public offering of it's stock. What provision is it bound by?
-
Securities Act of 1933
or
Act of Full Disclosure - The government agency charged with enforcement of the nations securities laws and regulations is the.
- Securities and Exchange Commision (SEC)
- When a corporation makes a public offering of its stock a __________ __________ must be submitted to the SEC.
- Registration statement
- During the registration period or cooling-off period while the SEC is reviewing the offering what will the I.Banker create?
- A Preliminary Prospectus
- What is the Preliminary Prospectus often called and why?
-
A Red Herring
Because of the Red Lettering on the front page telling investors its a preliminary prospectus. - What does a Preliminary Prospectus do?
- Gives potential investors information about the company and the securities to be issued.
- What two things does a Preliminary Prospectus not include?
-
A public offering price
and
The effective date - If a prospect is interested in your red herring he will give you an idication of interest. Can you take his order or any money?
-
NO!
Under no Circumstances can a sale be made befor the effective date. - A ________ buys and sells securities for the account and risk of someone else and charges a commission the the services rendered.
- Broker/Agent
- One who acts as a dealer rather than an agent or broker. A dealer who buys and sells for his own account and risk.
- A Principal
-
T/F
Not all securities are required to be registered with the SEC. -
True
Gov, fed and local; commerc paper; Private placements and Intra-state offerings are exempt. - A person who handles money on behalf of someone else.
- A Fiduciary
- The Fiduciary must abide by one of two criteria that a state may adopt as to what a fiduciary can invest. They are?
-
Legal List
Prudent Investor Rule -
Corporate underwriting is done on either a __________ ________
or _____________ ________ basis. -
Firm Commitment
Best Effort