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

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Alfred

1 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?

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Yolando

1 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.

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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.

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Mabelle

12 days ago

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

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Paz

18 days ago

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

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Coral

25 days ago

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

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Val

1 months ago

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

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Dorcas

1 months ago

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

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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.

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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.

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Trina

18 days 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.

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Quentin

21 days ago

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

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Afton

1 months ago

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

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Iola

2 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?

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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!

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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.

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Raymon

2 months ago

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

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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.

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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.

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Ronald

3 months ago

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

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