2 Summ 2017 1) What is a prospectus? A) A letter issued by the SEC that outlines the changes roquired for a ngistration statement to be approved. B) A letter issued by the SEC authorizing a new issue of securities C) An advertisement in a financial newspaper that describes a security offering D) A document that describes the details of a proposed security offering along with relevant information about the issuer E) A report stating that the SEC recommends a new security to investors 2) D.L. Jones & Co. recently went public. The firm received S20 soshare on the entire offer of 25.000 shares. Keeser & Co, served as the underwriter and sold 23,700 shares to the public af an offer price of $22 a share. What type of underwriting was this? A) Shelf B) Best etforts C) Oversubscribed. D) Firm commitment. E) Private placement. 3) Trevor is the CEO of Harvest Foods, which is a privately held corporution. What is the first step he must take if he wishes to take Harvest Foods public? A) Gain board approval, B) Select an underwriter o Obtiain SEC approval pi Distribute a prospecius E) Prepare a registration statement. n with firm commitment underwriting, the issuing firm exacity how many shares will be purchased by the general pubilic during the ofler ws period B) Knows upfhont the amount of money it will receive from the stock offering C) Is unsure of the total amount of funds it will receive until after the offering is D) Retains the financial risk associated with unsold shares. f') Is unsure of the number of shares it will actually issue until after the offering is completed Vith Dutch auction underwriting A) The bidder for the largest quantity receives the first allocation of securities. B) All bidders receive at least a portion of the quantity for which they bid. C) The selling firm receives the maximum possible price for each security sold. D) Each winning bidder pays the minimum price offered by any bidder E) All successful bidders pay the same price per share