Finra Exam Series-7 Topic 7 Question 105 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 105
Topic #: 7

[All Series-7 Questions]

In a firm commitment offering, any shares that are not sold are:

Areturned to the issuing corporation

Blisted in the over-the-counter market

Ctransferred to treasury stock

Downed by the members of the syndicate

Show Suggested Answer

Suggested Answer: A

$0.45. Since treasury stock does not receive dividends, divide $450,000 by the outstanding 100,000 shares to arrive at $0.45 per share.

by Asuncion at Jan 10, 2025, 06:33 PM

Limited Time Offer

25%

Off

Get Premium Series-7 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Elvera

12 days ago

I'm not sure about this one, but it makes sense that unsold shares would be returned to the issuing corporation. So, I'll go with A) as well.

upvoted 0 times

...

Thurman

13 days ago

I agree with Ronald, because in a firm commitment offering, the underwriter agrees to buy all the shares, so any unsold shares would go back to the issuing corporation.

upvoted 0 times

...

Ronald

22 days ago

I think the answer is A) returned to the issuing corporation.

upvoted 0 times

...