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Which of the following statements is true regarding the SEC's characterization of a registration statement that has just been made effective?
Step by Step Explanation:
SEC Registration Statements: The SEC reviews registration statements for completeness and compliance but does not judge the merits, approve, or endorse the securities being offered.
Other Options:
A, B, and C: Misrepresent the SEC's role in the registration process.
SEC Bulletin on Registration Statements: SEC Registration Process.
The Options Clearing Corporation (OCC) is a registered clearing agency for which of the following products?
The Options Clearing Corporation (OCC) is responsible for issuing and guaranteeing the performance of listed options contracts, including Long-term Equity Anticipation Securities (LEAPS), which are long-term options.
D is correct because LEAPS are a type of listed options contract cleared by the OCC.
A is incorrect because listed stocks are not options contracts.
B is incorrect because over-the-counter bonds are not cleared by the OCC.
C is incorrect because ETFs are not options, though ETF options may be cleared by the OCC.
A customer buys 100 ABC at $50 and at the same time sells an ABC April 50 call at $8. At expiration, ABC must be at what market price for the customer to break even?
Step by Step Explanation:
Breakeven Calculation: For covered call writing, breakeven is the stock purchase price minus the premium received.
Purchase Price = $50
Premium Received = $8
Breakeven = $50 - $8 = $42.
Other Options:
B, C, and D: Incorrect because they do not reflect the proper calculation of stock price minus the premium.
Options Clearing Corporation (OCC) Education: OCC Options Guidance.
A registered representative who is terminated from a broker-dealer must notify FINRA of a residential address change for what period of time after termination?
Step by Step Explanation:
FINRA Rule 1122: Requires that registered representatives update their residential address with FINRA for two years post-termination.
Purpose: This ensures accurate records for potential regulatory inquiries during the statutory two-year period when a terminated individual remains subject to FINRA's jurisdiction.
FINRA Rule 1122 (Filing False or Misleading Information): FINRA Rule 1122.
Company ABC stock currently trades on an exchange. An ABC insider wants to sell a large number of shares of her privately held ABC stock. ABC files the necessary paperwork to register the shares, but the insider decides to wait and sell the stock at a later date. Which of the following terms best describes the type of offering that is occurring in this situation?
Step by Step Explanation:
Secondary Offering: Involves the sale of shares by an existing shareholder, such as an insider, rather than the company itself issuing new shares.
Incorrect Options:
A: Rights offerings involve giving existing shareholders the opportunity to buy additional shares.
B: Private offerings are not registered with the SEC and involve limited investors.
C: An exempt offering refers to securities exempt from SEC registration, such as Regulation D offerings.
SEC Guide on Secondary Offerings: SEC Secondary Offerings.
