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12 Cards in this Set
- Front
- Back
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Regulation D |
Refers to private placements |
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SEC Rule 15C2-4 |
Requires broker dealers to provide an escrow account at an independent bank for the benefit of the investors |
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SEC Rule 10b-9 |
Underwriters must be honest about the type of agreement they are engaged in |
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Syndicate desk |
Markets, sells, and possibly stabilizes the new issue |
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Agreement among underwriters (AAU) |
1) appoints the originating investment bank as the managing (lead underwriter) 2) assigns each syndicate member a proportionate liability 3) authorizes the manager to allocate a portion of the issue to a selling group |
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Selling Group |
broker-dealers that dell an allotment of the newly issued secrutieis on behalf of the underwriter or syndicate memebrs |
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Selected dealer agreement |
1)stipulates the terms for the selling group 2) affirms the firm is in good standing with regulators 3) methods of communicating supplemental information about the offering (deal wire) 4) payment terms for the selected dealer's participation 5) circumstances under which the agreement will terminate |
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POP |
Public offering price |
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Manager's fee |
Compensate s the managing underwriter for negotiating and managing the offering |
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Underwriting fee |
Compensates syndicate members for assuming the risk of not being able to sell the offering |
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Selling concession |
compensates the manacling underwriter, the syndicate member,or the selling group member for actually selling the share |
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Not part of the fee |
book-runner fee Reimburses issuer expenses Blue sky fees |
