Exam 41: Investor Protection, E-Securities, and Wall Street Reform

It is legal for a company employee to make a profit by personally purchasing shares of the corporation prior to public release of favorable information.

List the securities exempt from registration with the SEC.

________ permits issuers to sell up to $5 million of securities to the public during a 12-month period, pursuant to a simplified registration process.

In order to be found guilty for violation of Rule 10b-5, intentional conduct (scienter)must be proven.

Blue-sky laws are state laws that regulate the issuance and trading of securities.

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

Which of the following is true of Section 11 of the Securities Act of 1933?

The issuer is permitted to assert a due diligence defense against the imposition of Section 11 liability.

Which of the following is true of Small Company Offering Registration (SCOR)form?

Which of the following is enough to prove a violation of Section 10(b)and Rule 10b-5?

Defendants cannot assert a due diligence defense against liabilities arising from the violation of Section 11 of the Securities Act of 1933.

Distinguish between nonissuer exemption, intrastate offering exemption, and private placement exemption.

An offering statement requires less disclosure compared to a registration statement.

The ________ is a federal statute that permits the SEC to obtain a civil penalty of up to three times the illegal benefits received from insider trading.

What is insider trading? How is it regulated in the U.S.A?

The Securities Act of 1933 regulates the purchase and sale of securities online.

An investor who has purchased an unregistered security can rescind their purchase, but not recover damages.

________ requires that any profits made by a statutory insider on transactions involving short-swing profits belong to the corporation.

A registration statement need not contain details on how the proceeds from the offering will be used.

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