Exam 18: Securities Regulation

The Insider Trading and Securities Fraud Enforcement Act of 1988 provides for maximum fines of $1 million per criminal action for individuals and $2.5 million per criminal action for corporations.

The first state to have securities regulation was:

Most investment scams are aimed at the very wealthy and originate by someone on Wall Street who looks to be impressive to investors.

The arbitration decisions from disputes involving investment firms or stockbrokers are:

In a suit for fraud against the issuer of a security, which element would not have to be shown?

To be considered an accredited, investor an individual must have an annual income of at least:

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:

According to SEC rules, 10-Q reports must be filed:

Corporate equity financing instruments generally specify:

Brokers and dealers must make known to their customers any possible conflicts of interest or other such information that is material to investment decisions.

A prospective issuer of securities need NOT hire which of the following:

A broker is a person engaged in the business of buying and selling securities for their own account.

Under securities law, misleading information that would reasonably affect investment decisions by securities owners includes:

The SEC allows for a private placement exemption because:

Securities financing is:

Most securities fraud cases arise from:

Which of the following is NOT true about the Securities and Exchange Commission:

An investment company that does not sell securities to the public, but specializes in internal investing, is exempt from the Investment Company Act.

Merrill Lynch and other brokerage firms, in an effort to reduce conflicts of interest inside the company, have established policies:

Which of the following is NOT included in a prospectus: