Series 82: Exercise

Exercise

Answer true or false.

1. 1. _____ Because tombstone ads must avoid being construed as an offer, they must not include the price of the security.
2. 2. _____ “Gun-jumping” refers to making a written offer during the cooling-off period without distributing a prospectus.
3. 3. _____ Generic advertisements are so called because they provide general information only and never state the name of the broker or dealer sponsoring the communication.
4. 4. _____ An issuer may distribute an issuer-specific research report about a security without it being considered an offer if the issuer is a well-known seasoned issuer.
5. 5. _____ The customer’s consent is required in order for a company to send an electronic copy of a prospectus.

Answers

1. 1. False. While tombstone ads must not make an offer, they may still contain the price or price range of a security.
2. 2. True. Any written offers made during a cooling-off perio