Exam 17: Investor Protection, E-Securities, and Wall Street Reform

A(n)________ is a financial instrument whose value is determined by the price movements of another asset.

A(n)________ is a person who discloses material nonpublic information to another person.

Section 5 of the Securities Act of 1933 requires an issuer to register its securities with the SEC prior to selling them to the public.

An exemption from registration which states that securities transactions not made by an issuer, an underwriter, or a dealer do not have to be registered with the SEC is known as known as a(n)________ exemption.

Interests in oil, gas, and mineral rights are considered statutorily defined securities.

The electronic data and record system of the Securities and Exchange Commission is known as ________.

The SEC provides a(n)________ which allows a person who provides information that leads to a successful SEC action to recover 10 percent to 30 percent of the monetary sanctions over $1 million recovered by the SEC.

________ occurs when a company employee or company advisor uses material nonpublic information to make a profit by trading in the securities of the company.

An accredited investor is defined as a person who does not understand the risks involved in securities investment and will suffer considerable financial damage if the investment fails.

Which of the following has the largest trading volume of any securities exchange in the world?

Which of the following is regulated by the Securities Act of 1933?

The sale of securities by an issuer to the public is known as ________.

During the review of a registration statement, the SEC does not pass judgment on the merits of the securities offered.

Which of the following is true of small offering exemptions?

________ is a provision of the Securities Act of 1933 that imposes civil liability on persons who intentionally defraud investors by making misrepresentations or omissions of material facts in the registration statement.

The ________ is a federal statute that primarily regulates the issue of securities by companies and other businesses.

A(n)________ is a flexible standard for defining a security.