Municipal New Issues: POS, OS, and Notice of Sale
Chapters in this video
- 0:00 No SEC registration: the municipal disclosure workaround
- 0:38 The three-step chronology: Notice of Sale, POS, then OS
- 2:01 Notice of Sale: the underwriter-only help wanted ad
- 3:27 POS as movie trailer: the municipal red herring
- 4:23 Final OS versus POS: the side-by-side exam comparison
- 5:34 Delivery deadlines and EMMA posting rules
- 7:24 Rapid-fire exam recap
What this video covers
- Why municipal securities have no prospectus, and which MSRB and underwriter rules create the parallel disclosure regime
- What a Notice of Sale is, where it gets published, and why retail investors never respond to one
- How the Preliminary Official Statement (POS) functions as the municipal equivalent of a red herring, and what final numbers are deliberately missing
- What the final Official Statement (OS) contains: final interest rates, final offering prices, final maturity schedule, sources and uses of funds, and security features
- When the OS must be delivered to a customer who buys during the underwriting period, and why that deadline is settlement
- The two-number rule for ongoing OS delivery obligations: the earlier of 90 days after the underwriting period ends or MSRB availability on EMMA, but never less than 25 days
- Why calling a municipal disclosure document a prospectus is an automatic wrong answer, and how the exam tests POS versus OS distinctions
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