The Securities and Exchange Commission:

All new interstate security issues are regulated by the:    A.  registration statement. B.  Green Shoe provision. C.  Securities Exchange Act of 1934. D.  Securities Act of 1933. E.  Federal Reserve Act of 1931. Refer to section 15.2

34.

The Securities and Exchange Commission:    A.  verifies the accuracy of the information contained in the prospectus. B.  verifies the accuracy of the information contained in the red herring. C.  examines the registration statement during the Green Shoe period. D.  is concerned only that an issue complies with all rules and regulations. E.  determines the final offer price once they have approved the registration statement. Refer to section 15.2

35.

Underwriters generally:    A.  pay a spread to the issuing firm. B.  provide only best efforts underwriting in the U.S. C.  receive less compensation under a competitive agreement than under a negotiated agreement. D.  market and distribute an entire issue of new securities within their own firm. E.  pass the risk of unsold shares back to the issuing firm via a firm commitment agreement. Refer to section 15.4

36.

With firm commitment underwriting, the issuing firm:    A.  is unsure of the total amount of funds it will receive until after the offering is completed. B.  is unsure of the number of shares it will actually issue until after the offering is completed. C.  knows exactly how many shares will be purchased by the general public during the offer period. D.  retains the financial risk associated with unsold shares. E.  knows up-front the amount of money it will receive from the stock offering. Refer to section 15.4

37.

With Dutch auction underwriting:    A.  each winning bidder pays the price he or she bid. B.  all successful bidders pay the same price. C.  all bidders receive at least a portion of the quantity for which they bid. D.  the selling firm receives the maximum possible price for each security sold. E.  the bidder for the largest quantity receives the first allocation of securities. Refer to section 15.4