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

Alfred

2 months ago

If the shares don't sell, maybe the company can just give them away as party favors at the next corporate retreat. That's a great use of treasury stock, right?

upvoted 0 times

...

Yolando

2 months ago

I'm going to go with C. The unsold shares get transferred to treasury stock. It's the only answer that really makes sense to me.

upvoted 0 times

...

Emogene

2 months ago

Hmm, I'm not too sure about this one. Maybe B? Listing the unsold shares in the over-the-counter market could be an option. Though I'm probably just guessing here.

upvoted 0 times

Jacqueline

13 days ago

Yes, the correct answer is C) transferred to treasury stock.

upvoted 0 times

...

Ming

16 days ago

That makes sense, I'll go with C) transferred to treasury stock too.

upvoted 0 times

...

Mabelle

30 days ago

I agree, the unsold shares are usually transferred to treasury stock.

upvoted 0 times

...

Paz

1 months ago

Yes, that's correct. The unsold shares are typically returned to the issuing corporation in a firm commitment offering.

upvoted 0 times

...

Coral

1 months ago

I think it's actually C) transferred to treasury stock.

upvoted 0 times

...

Val

2 months ago

I agree, unsold shares are usually returned to the issuing corporation.

upvoted 0 times

...

Dorcas

2 months ago

I think it's actually A) returned to the issuing corporation.

upvoted 0 times

...

Earleen

2 months ago

This is a tricky one, but I'm going with A. The unsold shares get returned to the issuing corporation. Seems like the logical thing to do.

upvoted 0 times

...

Ernie

2 months ago

D sounds good to me. The members of the syndicate should own the shares that didn't sell. They're the ones who took on the risk, after all.

upvoted 0 times

Trina

1 months ago

I'm not sure, but I think B might be the right choice. Unsold shares could be listed in the over-the-counter market.

upvoted 0 times

...

Quentin

1 months ago

I think C is the correct answer. The unsold shares are usually transferred to treasury stock.

upvoted 0 times

...

Afton

2 months ago

I agree, D makes sense. The syndicate members should have ownership of the unsold shares.

upvoted 0 times

...

Iola

3 months ago

I think the correct answer is C. The unsold shares are transferred to treasury stock. That's how it works in a firm commitment offering, right?

upvoted 0 times

Eugene

2 months ago

That's right! The unsold shares in a firm commitment offering are transferred to treasury stock. Good job on knowing that!

upvoted 0 times

...

Andree

2 months ago

I believe the correct answer is C as well. The unsold shares are not returned to the issuing corporation or listed in the over-the-counter market.

upvoted 0 times

...

Raymon

2 months ago

Yes, you are correct! The unsold shares are indeed transferred to treasury stock in a firm commitment offering.

upvoted 0 times

...

Elvera

3 months 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

3 months 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

3 months ago

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

upvoted 0 times

...