Series 7 practice questioneasyCustomer Contact and Communications 1
A representative discussing a new issue with a prospect should describe a preliminary prospectus as:
- Aa final confirmation of allocation
- Ba research report exempt from filing
- Can offering document used before the registration becomes effective✓ Correct answer
- Da purchase contract that binds the customer
Explanation
Why C — an offering document used before the registration becomes effective
A preliminary prospectus, often called a red herring, is used during the cooling-off period before effectiveness. It provides material information but cannot be used to accept payment or confirm a sale.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 755+ Series 7 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Seeks Business for the Broker-Dealer questions
- A customer-focused investment recommendation must take into account all of the following EXCEPT the customer’s:
- A referral fee for opening brokerage accounts may generally be paid only to:
- Retail correspondence prepared by a representative generally requires prior approval by:
- Which factor is most relevant before recommending a callable bond to an income investor?