I just failed my first attempt. There was some material that wasn’t covered as far as I can tell but it was on the test and is on other test prep sites. I’m trying to recall it as I go through. The first one that comes to mind was on FWP, free writing prospectus. Could you help me find where that is in our material?
there was a lot on the different numbered rules and rules surrounding ERISA and employer sponsored plans. but one thing I couldn’t find was Reg CF about crowdfunding. and something called DRIP.
I’m so sorry to hear that, but it sounds like you’re keeping a good attitude!
Here’s the link to our chapter on ERISA and employer-sponsored retirement plans.
The other topics are likely experimental and unscored; I’m discussing them with our instructors and will follow up soon. In the meantime, I reviewed your account and have some suggestions.
Most importantly, as you prepare for your retake, please continue your studies until you repeatedly pass practice exams! Passing our practice exams is the best gauge of success on the actual exam. It’s also important to simulate the actual exam experience as closely as possible by taking the exams realistically, with the instant feedback mode turned off. It’s also essential to carefully review the questions after you’ve taken them. Beyond just seeing the correct choice, think about why you picked another option, and revisit the textbook if you need to review that concept and deepen your knowledge!
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Here’s a concise summary of the potentially testable learning objectives related to the other topics. We expect that if they show up, any questions will be general and high-level, but we’ll add these to our course materials for completeness:
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FWP (Free Writing Prospectus): A flexible written communication (like emails or slides) used in WKSI or Shelf offerings under Rule 433. Must be filed with the SEC, can’t contradict the registration statement, must include a legend, and for some issuers must be accompanied by a prospectus.
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Reg CF (Regulation Crowdfunding): Allows companies to raise up to $5M through FINRA-approved platforms. Some companies (e.g. foreign, investment firms, shell companies) are ineligible. Securities generally can’t be resold for 1 year. Non-accredited investor limits:
- Under $124K income: greater of $2,500 or 5% of income/net worth
- Over $124K income: up to 10% of income/net worth
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DRIP (Dividend Reinvestment Plan): Offered by the issuer to reinvest dividends into more shares, often with no fees or at a discount. Taxable in the year received as ordinary income unless stock is issued, in which case it’s taxable when sold.