when the new issue of securities is purchased pursuant to a best effort basis. All the other choices

are allowable under the rule “except” this one.

the current market for the stock. FINRA rules require the markup to be based upon the current

market price.

the syndicate manager. The reallowance as well as the selling concession given to selling group

members are determined by the managing underwriters.

it may be entered. In a joint account any tenant is empowered to enter orders, which is specified in

the account agreement.

a private placement. Normally, private placements are conducted with an investment letter.

there is a 14-day owner usage provision. This provision is unrelated to qualification as a security.

all of the above. A profit sharing plan has tax deductible contributions and is designed to provide a

retirement plan for participants. Income in the plan is tax-free until withdrawn.

income. With an income program, the well is already producing. The risk is associated with the

commodity price.

syndicate account letter. This letter is sent by the manager of a competitive bid syndicate to the

other members. The priority and other procedures, including allocation amounts, are specified in the

letter. Members signify acceptance by signing the letter and returning it to the manger.

a shareholder may not redeem any shares for 13 months. Redemptions are permissible at any time.

However, since escrowed shares are set aside to cover the difference in sales loads based on terms of

the letter, redemptions prior to 13 months may liquidate the escrow account and thus return to the

investor 100% of net asset value.