FINRA Series 7 General Securities Representative Qualification Examination (GS) Series-7 Question # 24 Topic 3 Discussion
Series-7 Exam Topic 3 Question 24 Discussion:
Question #: 24
Topic #: 3
Bubba Corporation has a registered public offering of 750,000 shares at $40. An underwriter of 30,000 shares is advised by the manager that its retention will be 70%.
How many shares may the underwriter sell to its own customers?
21,000. The underwriter is permitted to retain 70% of the 30,000 shares. The remaining 9,000 shares are kept in the pot by the manager.
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