Question 1

The agency responsible for enforcing the federal securities laws is the:

Accepted Answer

A) FTC. 
B) SEC. 
C) Commerce Department. 
D) EEOC. 
A) FTC. 
B) SEC. 
C) Commerce Department. 
D) EEOC.

Question 2

If Mark owns shares in General Custard Co., he may bring his proposal for a new subdivision, branching out into ice cream, before the shareholders if he:

Accepted Answer

A) owns at least 5% of the GC Co.stock. 
B) owns at least 10% of the GC Co.stock. 
C) limits it to 5,000 words. 
D) has not made a proposal yet this year. 
A) owns at least 5% of the GC Co.stock. 
B) owns at least 10% of the GC Co.stock. 
C) limits it to 5,000 words. 
D) has not made a proposal yet this year.

Question 3

The SEC may not advance the effective date of a registration statement.

Accepted Answer

A) True 
 B)False

Question 4

The antifraud provisions of the 1934 Act would prohibit which of the following?

Accepted Answer

A) Lying about the value of the firm's assets to sell stock 
B) Disclosing that the firm has discovered oil on its property in order to sell stock 
C) Telling about the bad health of the CEO in a transaction to purchase stock 
D) Not disclosing the salaries of secretaries of a large firm whose stock is being sold 
A) Lying about the value of the firm's assets to sell stock 
B) Disclosing that the firm has discovered oil on its property in order to sell stock 
C) Telling about the bad health of the CEO in a transaction to purchase stock 
D) Not disclosing the salaries of secretaries of a large firm whose stock is being sold

Question 5

A "private placement" involves no public offering and is exempt from registration.

Accepted Answer

A) True 
 B)False

Question 6

The SEC has adopted rules requiring an issuer's chief executive and chief financial officers to certify the financial and other information contained in the issuer's annual and quarterly reports.

Accepted Answer

A) True 
 B)False

Question 7

Under Rule 505, the issuer must:

Accepted Answer

A) not advertise. 
B) restrict the offering to thirty-five persons. 
C) limit the offering to $1 million. 
D) sell only to "accredited investors." 
A) not advertise. 
B) restrict the offering to thirty-five persons. 
C) limit the offering to $1 million. 
D) sell only to "accredited investors."

Question 8

SEC rules concerning fraud in securities transactions apply to:

Accepted Answer

A) the issuance or sale of all securities, even those exempted by the 1933 Act. 
B) only securities registered under the 1934 Act. 
C) only securities registered under the 1933 Act. 
D) only publicly traded securities. 
A) the issuance or sale of all securities, even those exempted by the 1933 Act. 
B) only securities registered under the 1934 Act. 
C) only securities registered under the 1933 Act. 
D) only publicly traded securities.

Question 9

Rule 10b-5 applies to:

Accepted Answer

A) any purchase or sale of any security. 
B) only the purchase or sale of securities registered under the 1934 Act. 
C) only publicly traded securities. 
D) only securities that are involved in a secondary distribution. 
A) any purchase or sale of any security. 
B) only the purchase or sale of securities registered under the 1934 Act. 
C) only publicly traded securities. 
D) only securities that are involved in a secondary distribution.

Question 10

Types of securities that are exempt from registration under the federal securities laws include:

Accepted Answer

A) securities of domestic banks. 
B) securities of a charitable organization. 
C) bonds issued by a city. 
D) All of these are exempt. 
A) securities of domestic banks. 
B) securities of a charitable organization. 
C) bonds issued by a city. 
D) All of these are exempt.

Exam 43: Securities Regulation

The agency responsible for enforcing the federal securities laws is the:

If Mark owns shares in General Custard Co., he may bring his proposal for a new subdivision, branching out into ice cream, before the shareholders if he:

The SEC may not advance the effective date of a registration statement.

The antifraud provisions of the 1934 Act would prohibit which of the following?

A "private placement" involves no public offering and is exempt from registration.

The SEC has adopted rules requiring an issuer's chief executive and chief financial officers to certify the financial and other information contained in the issuer's annual and quarterly reports.

Under Rule 505, the issuer must:

SEC rules concerning fraud in securities transactions apply to:

Rule 10b-5 applies to:

Types of securities that are exempt from registration under the federal securities laws include:

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature, Formation, and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection

Employment Law

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

51: The Legal Environment Of Business

52: Contracts.

53: Agency.

54: Sales

55: Negotiable Instruments

56: Unincorporated Business Association

57: Corporations

58: Debtor and Creditor Relation

59: Regulation of Business

60: Property.

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