Series 79 practice questioneasySyndicate and Selling Groups
What is the key difference between a syndicate member and a selling group member?
- ASelling group members must always be issuers
- BA syndicate member shares underwriting liability, while a selling group member usually helps distribute without underwriting risk✓ Correct answer
- COnly selling group members receive concessions
- DSyndicate members cannot place orders
Explanation
Why B — A syndicate member shares underwriting liability, while a selling group member usually helps distribute without underwriting risk
A syndicate member shares underwriting liability, while a selling group member usually helps distribute without underwriting risk Syndicate members are part of the underwriter group that purchases or commits on the securities; selling group members typically distribute under a dealer agreement. That distinction matters for risk allocation and economics.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 477+ Series 79 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Underwriting & New Financing questions