Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

Finra Exam SIE Topic 6 Question 1 Discussion

Actual exam question for Finra's SIE exam
Question #: 1
Topic #: 6
[All SIE Questions]

Under SEC Regulation A, which of the following market participants, if deemed to be a bad actor, will disqualify the offering from reliance on this registration exemption?

Show Suggested Answer Hide Answer
Suggested Answer: B

SEC Regulation A provides a registration exemption for smaller public offerings but includes a 'bad actor' disqualification. If certain key parties, such as the issuer, underwriter, or affiliates, have been involved in securities violations, the exemption is forfeited.

B is correct because underwriters are considered essential participants, and their status as bad actors disqualifies the offering.

A, C, and D are incorrect because custodians, transfer agents, and clearing corporations are not included in the 'bad actor' provisions of Regulation A.


by Lea at Feb 08, 2025, 11:57 PM

Limited Time Offer

25%

Off

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

Contribute your Thoughts:

Submit Cancel
Goldie
3 months ago
The underwriter is the one who can really mess things up if they're a bad actor. Better keep an eye on those guys!
upvoted 0 times
Billye
2 months ago
That's true, they play a crucial role in the offering process so it's important to make sure they're in compliance.
upvoted 0 times
...
Iluminada
3 months ago
Yeah, underwriters can definitely cause some trouble if they're not on the up and up.
upvoted 0 times
...
...
Luisa
3 months ago
Underwriter, for sure. Although, I heard the SEC has a sense of humor and might disqualify the offering if the underwriter's name is 'Sir Sketchy McSketcherson'.
upvoted 0 times
Amos
3 months ago
That's true, the SEC takes the role of underwriter very seriously.
upvoted 0 times
...
Rupert
3 months ago
I agree, underwriter is a key player in the offering process.
upvoted 0 times
...
...
Lorrie
3 months ago
Clearly it's the underwriter. I mean, who else would have that much influence on the offering? Except maybe the clearing corporation, but they're just the middlemen, right?
upvoted 0 times
...
Jamie
4 months ago
I'm gonna go with B. Underwriter. Gotta keep those bad actors out of the offering!
upvoted 0 times
Fairy
2 months ago
Absolutely, it's all about maintaining integrity in the market and ensuring transparency for all participants.
upvoted 0 times
...
Nobuko
3 months ago
I think it's important to have regulations in place to protect investors from potential harm.
upvoted 0 times
...
Lindy
3 months ago
Yeah, underwriters play a crucial role in the process, so it makes sense to disqualify them if they're deemed bad actors.
upvoted 0 times
...
Natalya
3 months ago
I agree, we definitely don't want any bad actors involved in the offering.
upvoted 0 times
...
...
William
4 months ago
I'm not sure, but I think it might be C) Transfer agent, as they handle securities transactions.
upvoted 0 times
...
Thora
4 months ago
I agree with Rolande, because underwriters play a crucial role in the offering process.
upvoted 0 times
...
Rolande
4 months ago
I think it's B) Underwriter.
upvoted 0 times
...
Leah
4 months ago
Hmm, I think it's the underwriter. They're the ones who really make or break the deal, right?
upvoted 0 times
Lilli
2 months ago
Definitely. If the underwriter is deemed a bad actor, it can have serious implications for the offering.
upvoted 0 times
...
Johnetta
2 months ago
Yeah, I agree. The underwriter plays a crucial role in the offering.
upvoted 0 times
...
Whitley
2 months ago
I think it's actually the underwriter too. They have a lot of influence in the process.
upvoted 0 times
...
Stefan
3 months ago
D) Clearing corporation
upvoted 0 times
...
Theresia
3 months ago
C) Transfer agent
upvoted 0 times
...
Pamela
3 months ago
I agree, the underwriter plays a crucial role in the offering process.
upvoted 0 times
...
Tayna
3 months ago
Definitely, they have a lot of influence on the success of the offering.
upvoted 0 times
...
German
3 months ago
D) Clearing corporation
upvoted 0 times
...
Gracia
3 months ago
B) Underwriter
upvoted 0 times
...
Sherill
3 months ago
C) Transfer agent
upvoted 0 times
...
Murray
3 months ago
B) Underwriter
upvoted 0 times
...
Fatima
3 months ago
A) Custodian
upvoted 0 times
...
Tina
3 months ago
A) Custodian
upvoted 0 times
...
...

Save Cancel