Series 24: Answers

Answers

1. 1. Answer: B. Rationale: In order to be listed on the OTCBB, the company must be current in its regulatory filings (such as its 10-K and 8-K reports) with the SEC. There is no such thing as an “examination period” by the OTCBB and there are no quantitative listing requirements.
2. 2. Answer: C. Rationale: Companies may decide to be listed on the Pink Sheets because they do not need to meet minimum requirements, such as making their financial statements public, filing periodic reports or submitting audited financial statements. They also do not need to register with FINRA, the SEC or anyone else.
3. 3. Answer: B. Rationale: Prior to selling a penny stock, SEC rules require a broker-dealer to first approve the customer for the transaction and receive from the customer a written agr