Series 79 practice questioneasyFINRA Rules Applicable to Investment Banking
Under FINRA rules, which of the following must be disclosed as underwriting compensation in a public offering?
- AReimbursement of bona fide issuer expenses
- BBlue sky fees paid by the underwriter
- COrdinary legal fees paid to outside counsel
- DStock options granted to the underwriter within 180 days prior to the filing✓ Correct answer
Explanation
Why D — Stock options granted to the underwriter within 180 days prior to the filing
Stock options granted to the underwriter within the specified period are considered underwriting compensation. Ordinary legal and issuer expenses are generally excluded, which is a frequent error.
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