Vocab Series 7

Certain financial and nonprofit institutions, and persons who meet established net worth or annual income criteria

Contract among members of a syndicate, stating their commitment and the structure of fees

Amount of stock a corporations charter allows it to sell

State laws in which a company must comply in order to sell its securities within the states bound aries

Degree and kind of responsibility an underwriter assumes for the sale of a securities issue

Securities owned by a director or officer of a corporation, or by a shareholder with 10% or more of the companies stock

Period following the filing date,( minimum of 20 days), during which the corporation and its underwriter must fulfill certain obligations while waiting for the registration to become effective

Meeting held at the end of the cooling-off period, in which the issuer, lead underwriter, and syndicate members make sure that all securities laws have been met

Underwriting syndicate in which each member is responsible for selling a specific portion of the issue plus that same portion of any shares left unsold by other members

Date on which the SEC tells the issuer that the registration statement is effective and that the offering can begin

Day the SEC receives a corporations registration statement to sell a new issue

Document that describes the issuer and the offering including the public offering price. this document is delivered to buyers

Illegal practice in which an under writer allocates shares of a hot issue to business associates, friends, family members or other proscribed individuals

Provision of most underwriting agreements stating that, in the face of strong public demand for an offering, the corporation will issue an additional number of shares

Public offering for which demand is so great (or the price is so low), that the security quickly sells out of the primary market and starts selling in the secondary market as a premium