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15 Cards in this Set
- Front
- Back
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Securities Act of 1933 consists of:
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- Regulates primary market.
- To provide for "full and fair disclosure" - Underwriting. - Prospectus. - Registration - Prevention of fraud in the sale of new issues. |
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Securities Act of 1934
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Regulates the secondary market
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What is an SRO?
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Self-Regulatory Organization
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Name SRO's.
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- NASD
- NYSE - MSRB - CBOE |
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Options cannot be bought on?
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Margin
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What occurs during the pre-registration period?
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- Document preparation
- No communication w/ the public |
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What is shelf-registration rule 145?
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Allows the flexibility of selling on delayed or continuos basis for up to 3 years [max shelf life]
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What is the green shoe clause?
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- Over allotment provision
- Allows for expansion of issue by a max of 15%. |
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What is pegging?
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Preventing stock from falling.
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What is the NASD rule 2790?
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Prohibits member firms from selling equity ipo's to account in which a restricted person has a beneficial interest.
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Who is considered restricted?
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* NASD member firms and their employees.
* Immediate family members of restricted persons if: - materially supported by emp - provide 25% of income - share household * Finders and fiduciaries * Portfolio managers Owners of a BD |
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What is an exempt account?
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- Account where the combined ownership of all restricted persons represents 10% or less.
- Issuer directed sales. |
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What are exempt securities?
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- US gov't and agency secs.
- Muni's - Securities issued by banks - Issued by non-profit orgs. short term corp. debt (not exceeding 270 days) - Small business investment co. |
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What is Rule 147?
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Intrastate exemption
- a bulk of issuers activities must be confined to one state |
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What is the formula for Option premium?
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Intrinsic value + time value
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