Exam 18: Securities Regulation

Accredited investors often buy private placement securities through Small Corporate Offering Registration (SCORs), which can be as small as a $1 million offering.

Fraud in securities dealings may be litigated under:

New securities may be offered for sale on the Internet, but not many are sold that way exclusively.

A share of stock represents the right to:

The truth-in-securities law refers to:

The primary dispute resolution mechanism between investors and brokers is:

Under the Securities Litigation Reform Act of 1995, companies have a safe harbor for forward-looking statements about the company made by executives.

The Dodd-Frank Wall Street Reform and Consumer Protection Act gave regulators expanded power to intervene in securities markets in case of a major meltdown.

The SEC rule that requires public companies to release material information to the public rather than release the information on a selective basis, such as in meetings with security analysts, is called:

A(n) ____ is a document providing the legal offering of the sale of a security.

Securities issued by banks and charitable organizations are exempt from SEC registration and disclosure requirements.

Individuals who violate the rules of the New York Stock Exchange may face expulsion from the Exchange.

When a company wants to take over another, it may issue:

Accredited investors include institutions such as banks and insurance companies.

Under Rule 144A, the SEC permits an exemption from:

In SEC v. Howey, the Supreme Court:

A company that issues debt securities paying a fixed return would be defined by the Investment Company Act as a(n):

By SEC rules, a private company is one with less than 500 shareholders that does not have stock traded that is traded publicly.

Jones works at an investment firm that helps corporations merge with other companies. Because of her work, she knows that two clients of her firm are going to merge. She also knows that when the announcement is made, the price of stock in these companies will jump. She buys stock in the companies before the announcement. She is:

Because of their special position within the securities industry, specialist firms may trade for their own account.