Chapter 5

Underwriting Securities


Bullet Understanding the specifics of registering securities

Bullet Knowing the types of offerings

Bullet Spotting exempt securities

All issuers of securities need a starting point, just as all securities need a birth date (just not the kind that’s celebrated with funny-looking hats and a cake). Most securities go through a registration procedure before the public can buy them. The SIE exam tests your ability to recognize the players and institutions involved in the registration process.

In this chapter, I cover topics related to bringing new issues (securities) to market. You find out about key players, types of security offerings, kinds of securities that don’t need to be registered, and other details about the underwriting process.

Bringing New Issues to the Market

A lot of things need to happen before securities hit the market. Not only do the securities have to be registered, but the issuer has to find a broker-dealer (like your firm) to sell the securities to the public. The SIE exam tests your expertise in answering questions about this process.

Starting out: What the issuer does

For an entity to become a corporation, the founders must file ...

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