Finra Exam Series-7 Topic 3 Question 84 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 84
Topic #: 3

[All Series-7 Questions]

An issuer is most likely to request an investment letter from the purchaser in connection with which of the offerings?

Aa hot issue

Ba mutual fund

Ca private placement

Dan exempt security

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 Shonda at Apr 14, 2024, 03:32 PM

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Tammy

2 months ago

A private placement, no doubt. Issuers love their investment letters almost as much as they love their exclusivity.

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Luther

2 months ago

Definitely a private placement. Can't have just anyone wandering in and buying up those exclusive offerings, can we?

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Omer

1 months ago

That's right, exempt securities are exempt from certain registration requirements, so an investment letter may be required.

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Asha

1 months ago

D) an exempt security

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Scarlet

2 months ago

Exactly, private placements are usually limited to accredited investors who can provide an investment letter.

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Timothy

2 months ago

C) a private placement

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Precious

3 months ago

Investment letters? Sounds like a real party for the issuer! I'll take a private placement any day.

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Dannette

2 months ago

Yeah, investment letters are just part of the process to ensure everything is in order.

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Shenika

3 months ago

I agree, private placements can offer some great opportunities.

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Ashleigh

3 months ago

Hmm, I'd say a private placement. Gotta keep those offerings nice and exclusive, you know?

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Lisha

2 months ago

D: Makes sense. It's a way to verify the investor's intentions and qualifications before proceeding with the offering.

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Antonio

2 months ago

C: I think it's important for the issuer to have that extra layer of protection with an investment letter.

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Virgilio

2 months ago

B: Yeah, I agree. It's all about keeping it exclusive and ensuring the investors are qualified.

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Dylan

2 months ago

A: Definitely a private placement. They want to make sure the investors are serious.

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Sabine

3 months ago

Private placements, of course! Issuers love those investment letters to cover their bases.

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Julene

3 months ago

I'm not sure, but I think it could also be for an exempt security.

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Vallie

3 months ago

I agree with Buck, a private placement seems like the right choice for an investment letter.

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Buck

4 months ago

I think the issuer would request an investment letter for a private placement.

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