Question 1

Which of the following is true of Section 12 of the Securities Act of 1933?

Accepted Answer

A)  It imposes liability on those who are negligent in not discovering the fraud. 
B)  It imposes civil liability on persons who intentionally defraud investors by making misrepresentations of material facts in the registration statement. 
C)  It imposes criminal liability on any person who willfully violates either the act or the rules and regulations. 
D)  It imposes civil liability on any person who violates the provisions of Section 5 of the act. 
A)  It imposes liability on those who are negligent in not discovering the fraud. 
B)  It imposes civil liability on persons who intentionally defraud investors by making misrepresentations of material facts in the registration statement. 
C)  It imposes criminal liability on any person who willfully violates either the act or the rules and regulations. 
D)  It imposes civil liability on any person who violates the provisions of Section 5 of the act.

Question 2

________ permits issuers to sell up to $50 million of securities to the public during a 12-month period,pursuant to a simplified registration process.

Accepted Answer

A)  SEC Rule 506 
B)  Section 12 of the Securities Act of 1933 
C)  Section 5 of the Securities Act of 1934 
D)  Regulation A 
A)  SEC Rule 506 
B)  Section 12 of the Securities Act of 1933 
C)  Section 5 of the Securities Act of 1934 
D)  Regulation A

Question 3

Preferred stock,bonds,debentures,and warrants are examples of common securities.

Accepted Answer

A) True 
 B)False

Question 4

A Form 10-Q is a(n)________ report that has to be filed by a reporting company as required by the Securities Exchange Act of 1934.

Accepted Answer

A)  weekly 
B)  annual 
C)  monthly 
D)  quarterly 
A)  weekly 
B)  annual 
C)  monthly 
D)  quarterly

Question 5

The purpose of the ________ is to make it easier for start-up companies to raise capital through initial public offerings.

Accepted Answer

A)  JOBS Act 
B)  STOCKS Act 
C)  Sarbanes-Oxley Act 
D)  Insider Trading Sanctions Act 
A)  JOBS Act 
B)  STOCKS Act 
C)  Sarbanes-Oxley Act 
D)  Insider Trading Sanctions Act

Question 6

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.

Accepted Answer

A)  Securities Act 
B)  Securities Exchange Act 
C)  Insider Trading Sanctions Act 
D)  SEC Rule 506 
A)  Securities Act 
B)  Securities Exchange Act 
C)  Insider Trading Sanctions Act 
D)  SEC Rule 506

Question 7

All defendants except the issuer may assert a due diligence defense against the imposition of Section 11 liability.

Accepted Answer

A) True 
 B)False

Question 8

Interests or instruments that are expressly mentioned in securities acts are common securities.

Accepted Answer

A) True 
 B)False

Question 9

SEC Rule 506 is known as the ________.

Accepted Answer

A)  nonissuer exemption 
B)  intrastate offering exemption 
C)  private placement exemption 
D)  interstate offering exemption 
A)  nonissuer exemption 
B)  intrastate offering exemption 
C)  private placement exemption 
D)  interstate offering exemption

Question 10

The general form for registering with the SEC is called ________.

Accepted Answer

A)  Form 10-K 
B)  Form 8-K 
C)  Form 10-Q 
D)  Form S-1 
A)  Form 10-K 
B)  Form 8-K 
C)  Form 10-Q 
D)  Form S-1

Question 11

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

Accepted Answer

A)  issuer 
B)  tippee 
C)  grantor 
D)  tipper 
A)  issuer 
B)  tippee 
C)  grantor 
D)  tipper

Question 12

Which of the following is classified under "common securities"?

Accepted Answer

A)  real estate 
B)  bullion 
C)  debenture 
D)  bank deposit 
A)  real estate 
B)  bullion 
C)  debenture 
D)  bank deposit

Question 13

Interests or instruments that are expressly mentioned in securities acts are known as ________.

Accepted Answer

A)  common securities 
B)  implicit securities 
C)  investment contracts 
D)  statutorily defined securities 
A)  common securities 
B)  implicit securities 
C)  investment contracts 
D)  statutorily defined securities

Question 14

Explain the liabilities of individuals involved in the exchange of material nonpublic information for personal benefits.Provide an example.

Accepted Answer

A person who discloses material nonpubli

Question 15

Preferred stock is an example of ________.

Accepted Answer

A)  implicit securities 
B)  statutorily defined securities 
C)  common securities 
D)  investment contracts 
A)  implicit securities 
B)  statutorily defined securities 
C)  common securities 
D)  investment contracts

Question 16

Which of the following is true of registration statements?

Accepted Answer

A)  A registration statement must be accompanied by financial statements certified by certified public accountants. 
B)  A registration statement once submitted cannot be amended. 
C)  The SEC judges the merits of the securities based on the registration statement. 
D)  The registration statement need not reveal how a company plans on using the proceeds from the offering. 
A)  A registration statement must be accompanied by financial statements certified by certified public accountants. 
B)  A registration statement once submitted cannot be amended. 
C)  The SEC judges the merits of the securities based on the registration statement. 
D)  The registration statement need not reveal how a company plans on using the proceeds from the offering.

Question 17

A person who discloses material nonpublic information to another person is called a tippee.

Accepted Answer

A) True 
 B)False

Question 18

Discuss briefly how an issuer's rights to offer and sell securities differ through different time periods during a registration process.

Accepted Answer

The Securities Act of 1933 limits the ty

Question 19

The prefiling period begins to run when the registration statement is filed with the SEC and continues until the registration statement is declared effective by the SEC.

Accepted Answer

A) True 
 B)False

Question 20

Explain how the JOBS Act favors non-reporting organizations in selling securities.

Accepted Answer

The JOBS Act amends Regulation A to perm

Exam 32: Investor Protection, E-Securities, and Wall Street Reform

Which of the following is true of Section 12 of the Securities Act of 1933?

________ permits issuers to sell up to $50 million of securities to the public during a 12-month period,pursuant to a simplified registration process.

Preferred stock,bonds,debentures,and warrants are examples of common securities.

A Form 10-Q is a(n)________ report that has to be filed by a reporting company as required by the Securities Exchange Act of 1934.

The purpose of the ________ is to make it easier for start-up companies to raise capital through initial public offerings.

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.

All defendants except the issuer may assert a due diligence defense against the imposition of Section 11 liability.

Interests or instruments that are expressly mentioned in securities acts are common securities.

SEC Rule 506 is known as the ________.

The general form for registering with the SEC is called ________.

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

Which of the following is classified under "common securities"?

Interests or instruments that are expressly mentioned in securities acts are known as ________.

Explain the liabilities of individuals involved in the exchange of material nonpublic information for personal benefits.Provide an example.

Preferred stock is an example of ________.

Which of the following is true of registration statements?

A person who discloses material nonpublic information to another person is called a tippee.

Discuss briefly how an issuer's rights to offer and sell securities differ through different time periods during a registration process.

The prefiling period begins to run when the registration statement is filed with the SEC and continues until the registration statement is declared effective by the SEC.

Explain how the JOBS Act favors non-reporting organizations in selling securities.

Legal Heritage and the Digital Age

Constitutional Law for Business and E-commerce

Courts and Jurisdiction

Judicial Alternative Administrative and E-Dispute Resolution

Intentional Torts and Negligence

Criminal Law and Cyber Crimes

Intellectual Property and Cyber Piracy

Ethics and Social Responsibility of Business

Nature of Traditional and E-Contracts

Agreement and Consideration

Capacity and Legality

Genuineness of Assent and Statute of Frauds

Third-Party Rights and Discharge

Breach of Contract and Remedies

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties and Product Liability

Creation and Transfer of Negotiable Instruments

Holder in Due Course and Liability of Parties

Banking System and Electronic Financial Transactions

Credit, Real Property Financing, and Secured Transactions

Bankruptcy and Reorganization

Agency law

Small Business, Entrepreneurship, and Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchise and Special Forms of Business

Antitrust Law and Unfair Trade Practices

Consumer Safety and Environmental Protection

Labor, Worker Protection, and Immigration Laws

Equal Opportunity in Employment

Personal Property, Bailment, and Insurance

Real Property, Landlord-Tenant Law, and Land Use Regulation

Family Law, Wills, and Trusts

Accountants' Duties and Liability

International and World Trade Law

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