A syndicate member in a divided $6 million municipal offering agrees to sell $600,000 of the offering. Initially the firm only sold $400,000 of the bonds. After one week, $1 million of the offering remains to be sold. The syndicate manager calls all of the members to tell them to sell and reminds them of their commitment. This syndicate member firm has selling responsibility for what amount of the bonds?
(D) $1 million
Answer (D) $1 million. The selling responsibility is 100%. When the offering closes down, the liability would then take precedence. But in this case, the question asks for selling responsibility, which is the $1 million in the account. Selling responsibility is ALWAYS 100%. If the question had asked for liability, as above, the answer would have been $200,000.
Didn't get this one right, go through this one a few times.