Series 7 - General Securities Representative Exam
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A Competitive Sale in municipal securities is
The sale of a new issue of municipal securities by an issuer directly to an underwriter or underwriting syndicate selected by the issuer
A
The sale of an existing issue of municipal securities by an issuer directly to an underwriter or underwriting syndicate selected by the issuer
B
A method of sale chosen by an issuer, requesting underwriters to submit a firm offer to purchase a new issue of municipal securities
C
A method of obtaining various bids from multiple parties to ensure the price received is an accurate depiction of value
D
Explanations
The sale of a new issue of municipal securities by an issuer directly to an underwriter or underwriting syndicate selected by the issuer is known as a negotiated sale; which is the other primary method by which an underwriter may purchase municipal bonds from an issuer for reoffering to the public. A method of sale chosen by an issuer, requesting underwriters to submit a firm offer to purchase a new issue of municipal securities defines a Competitive Sale