Rule 8 of 14 in this unit1.4

1.4 Offerings

SIE outline 1.4

Firm Commitment vs Best Efforts

Firm commitment: the underwriter buys it all, risk included. Best efforts: it only tries. NOT the same risk allocation.

The method for this kind of question
  1. 506(b) and 506(c) trade opposite things

Now answer

1 question on this screen, from this outline item's own pool, so some will test a rule you met earlier in the unit. Pick an answer, say how sure you are, then reveal. Being sure and wrong is the most useful thing that can happen here, and the coach treats it that way.

Question 1Exam level

What are blue sky laws?

How sure are you?

Correct: A. Blue sky laws are state-level securities registration requirements, on top of anything the SEC requires; federal registration does not excuse a state filing.
B. Blue sky laws sit on top of federal registration; they do not replace it.
C. FINRA does not write blue sky laws; NASAA's own state-regulator members administer them.
D. Blue sky laws are a state registration layer, not a private-placement exemption.

Unit: SIE outline 1.4

Next rule20 Days, and the SEC Can Move It

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