Question

1. One who sells for the company offering the securities or guarantees the securities during their initial sale is the:

a. issuer

b. underwriter

c. seller

d. controlling person

e. sponsor

2. Tombstone ads are brief announcements of a security and its price which appear during the:

a. registration period

b. waiting period

c. prospectus period

d. prefiling period

e. prospectus period

3. For one to be considered an insider, they must:

a. own more than 15% of any security and be a director or officer of the issuer

b. work for the company in any capacity, regardless of their security ownership

c. own more than 5% of any security and be a director or officer of the issuer

d. work for the company in any capacity and own the requisite percentage of securities

e. own more than 10% of any security and be a director or officer of the issuer

Answer 1

1. Issuer

Reason: The issuer in his initial public offering sells for the company offers securities in the initial sale

2. Waiting period

Reason: Tombstone ads announce securities and their prices during the waiting period

3. Own more than 10% of any security and be a director or officer of the issuer

Reason: An insider is someone who is operating either as director or senior officer, owning more than 10% of the company shares