Series 7 - General Securities Representative Exam

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Which of the following are true of control securities?

They are covered by Rule 144 and Sellers of these securities must wait through the holding period to selling the securities to the public
A
Sellers of these securities must wait through the holding period to selling the securities to the public, They always represent 20% or more a corporation’s outstanding shares, They can only be shares owned by a single investor who owns 15 percent or more of a corporation’s preferred stock
B
They are covered by Rule 144, Sellers of these securities must wait through the holding period to selling the securities to the public, They always represent 20% or more a corporation’s outstanding shares, They can only be shares owned by a single investor who owns 15 percent or more of a corporation’s preferred stock
C
They are covered by Rule 144 only
D

Explanations

Control securities are covered by Rule 144. Sellers must wait a minimum length of time (holding period) before selling these shares to the public. They always represent 20% or more a corporation’s outstanding shares & They can only be shares owned by a single investor who owns 15 percent or more of a corporation’s preferred stock DO NOT apply

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