Roles of Participants in Offerings
Chapters in this video
- 0:00 The market movie cast: Hollywood framing for offerings
- 1:01 Syndicate vs. selling group: who takes the risk
- 3:00 Broker, agent, dealer, issuer, rating agency: the full exam cast
- 4:06 Municipal advisors fiduciary duty vs. underwriter arm's length
- 5:33 Transfer agent, registrar, and custodian: the back office trio
- 7:07 Six steps from managing underwriter to public sale
- 8:02 Rapid-fire exam recap
What this video covers
- Why the selling group earns a selling concession but assumes zero underwriting risk, while only syndicate members share the financial burden
- How to distinguish issuer, broker-dealer, agent, dealer, and rating agency when each is the correct answer in a role-identification scenario
- The fiduciary duty municipal advisors owe to municipal entities, and why underwriters act at arm's length instead
- The transfer agent's role as shareholder recordkeeper, dividend distributor, and certificate processor
- The registrar's single critical function: preventing issuance beyond the authorized share count in the corporate charter
- The custodian's purpose as the physical or digital vault safekeeping customer securities and cash
- The six-step sequence from selecting the managing underwriter through due diligence, Securities and Exchange Commission (SEC) filing, syndicate formation, pricing, and ultimate distribution
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