Exam 18: Securities Regulation

The Securities Litigation Uniform Standards Act of 1998 requires:

The ____ regulates trading in existing securities and imposes disclosure requirements on corporations that have issued publicly held securities.

Which of the following is NOT a type of investment company as defined by the Investment Company Act:

The Investment Company Act requires that at least 40% of the board of directors of an investment company must be outsiders to:

Companies that issue publicly traded securities must report daily stock transaction volumes to the SEC.

The SEC allows for a private placement exemption because:

Under ____, any person who buys a security covered by a registration statement that contains false or misleading information, or that omits information that was important to a decision to purchase, may sue to recover losses incurred in that purchase.

Stocks and bonds are the most commonly known form of securities.

Which of the following securities would NOT be exempt from regulation:

Firms that generally do not deal directly with the public and instead handle transactions for brokers are known as:

A company that offers a fixed portfolio of securities would be defined by the Investment Company Act as a(n):

The financial future of most people is tied to securities because:

The Securities Litigation Reform Act of 1995:

The regulations adopted by the SEC under the Investment Advisers Act provide regulation of professionals working in the securities industry.

The ____ requires investment companies to register as such with the SEC, which then makes the companies subject to regulations of their activities and holds them liable to the SEC, and to private parties, for violations.

A security is sold to the public under a private placement exemption. Later a suit is filed under federal securities law claiming securities fraud. This suit will:

The idea behind the disclosure provisions contained in federal securities law is that:

The Securities Litigation Reform Act of 1995:

A 10-K report is:

The Securities Act of 1933 concerns truth in disclosure at the time securities are first sold; the 1934 Securities Exchange Act concerns regulation of securities already in the market.