Question 1

Equity instruments, like stock, specify the amount of money, the time period it is to be held, and the rate of return to be paid.

Accepted Answer

A) True 
 B)False

Question 2

The SEC's Rule 10b-5:

Accepted Answer

A)  was adopted under Section 10(b) of the 1934 Act 
B)  concerns securities fraud and prohibits "manipulative" deceptive device 
C)  applies to registered and unregistered securities 
D)  was adopted under Section 10(b) of the 1934 Act concerns securities fraud and prohibits "manipulative" deceptive device 
E)  was adopted under Section 10(b) of the 1934 Act concerns securities fraud and prohibits "manipulative" deceptive device and applies to registered and unregistered securities 
A)  was adopted under Section 10(b) of the 1934 Act 
B)  concerns securities fraud and prohibits "manipulative" deceptive device 
C)  applies to registered and unregistered securities 
D)  was adopted under Section 10(b) of the 1934 Act concerns securities fraud and prohibits "manipulative" deceptive device 
E)  was adopted under Section 10(b) of the 1934 Act concerns securities fraud and prohibits "manipulative" deceptive device and applies to registered and unregistered securities

Question 3

A security can be which of the following:

Accepted Answer

A)  money borrowed by a corporation 
B)  a stock traded on the New York Stock Exchange 
C)  an agreement between friends 
D)  both a and b are correct 
E)  a, b, and c are all correct 
A)  money borrowed by a corporation 
B)  a stock traded on the New York Stock Exchange 
C)  an agreement between friends 
D)  both a and b are correct 
E)  a, b, and c are all correct

Question 4

Which of the following securities would be exempt from regulation:

Accepted Answer

A)  debts issued by the federal government 
B)  debts issued by a state government 
C)  debts guaranteed by a state government 
D)  debts issued by a local government 
E)  all of the other specific choices are correct 
A)  debts issued by the federal government 
B)  debts issued by a state government 
C)  debts guaranteed by a state government 
D)  debts issued by a local government 
E)  all of the other specific choices are correct

Question 5

The Supreme Court has discouraged the use of arbitration to resolve disputes involving securities firms due to persistent bias in favor of the industry and against clients.

Accepted Answer

A) True 
 B)False

Question 6

To avoid charges of insider trading, executives may use "program trading" on a set time schedule.

Accepted Answer

A) True 
 B)False

Question 7

Studies indicated that the enactment of the Sarbanes-Oxley Act has:

Accepted Answer

A)  led to more investment in U.S. stock exchanges 
B)  led to lower costs for small businesses 
C)  led to corporate business shifting away from the U.S. to competitors such as London 
D)  led to corporate business shifting away from places like London and to the U.S. 
E)  an increase in purchases of government bonds 
A)  led to more investment in U.S. stock exchanges 
B)  led to lower costs for small businesses 
C)  led to corporate business shifting away from the U.S. to competitors such as London 
D)  led to corporate business shifting away from places like London and to the U.S. 
E)  an increase in purchases of government bonds

Question 8

When the SEC becomes involved in an enforcement action it is most likely to use remedial actions to punish a wrongdoer⎯not financial penalties.

Accepted Answer

A) True 
 B)False

Question 9

The president of a company says that new products to be introduced are sure to double company profits. Based on this, investors buy stock in the company, pushing up its price. The products flop, the company loses money, so the stock price falls. Investors are most likely to sue the president of the company under what theory provided by the securities law?

Accepted Answer

A)  liability for mutual securities fraud 
B)  liability for insider trading 
C)  liability for securities negligence 
D)  liability for proxy fraud 
E)  none of the other choices 
A)  liability for mutual securities fraud 
B)  liability for insider trading 
C)  liability for securities negligence 
D)  liability for proxy fraud 
E)  none of the other choices

Equity instruments, like stock, specify the amount of money, the time period it is to be held, and the rate of return to be paid.

The SEC's Rule 10b-5:

A security can be which of the following:

Which of the following securities would be exempt from regulation:

The Supreme Court has discouraged the use of arbitration to resolve disputes involving securities firms due to persistent bias in favor of the industry and against clients.

To avoid charges of insider trading, executives may use "program trading" on a set time schedule.

Studies indicated that the enactment of the Sarbanes-Oxley Act has:

When the SEC becomes involved in an enforcement action it is most likely to use remedial actions to punish a wrongdoer⎯not financial penalties.

Todays Business Environment: Law and Ethics

The Court Systems

Trials and Resolving Disputes

The Constitution: Focus on Application to Business

Criminal Law and Business

Elements of Torts

Business Torts and Product Liability

Real and Personal Property

Intellectual Property

Contracts

Domestic and International Sales

Business Organizations

Negotiable Instruments, Credit, and Bankruptcy

Agency and the Employment Relationship

Employment and Labor Regulations

Employment Discrimination

The Regulatory Process

Consumer Protection

Antitrust Law

Environmental Law

The International Legal Environment of Business

Filters

Exam 18: Securities Regulation

Equity instruments, like stock, specify the amount of money, the time period it is to be held, and the rate of return to be paid.

The SEC's Rule 10b-5:

A security can be which of the following:

Which of the following securities would be exempt from regulation:

The Supreme Court has discouraged the use of arbitration to resolve disputes involving securities firms due to persistent bias in favor of the industry and against clients.

To avoid charges of insider trading, executives may use "program trading" on a set time schedule.

Studies indicated that the enactment of the Sarbanes-Oxley Act has:

When the SEC becomes involved in an enforcement action it is most likely to use remedial actions to punish a wrongdoer⎯not financial penalties.

Todays Business Environment: Law and Ethics

The Court Systems

Trials and Resolving Disputes

The Constitution: Focus on Application to Business

Criminal Law and Business

Elements of Torts

Business Torts and Product Liability

Real and Personal Property

Intellectual Property

Contracts

Domestic and International Sales

Business Organizations

Negotiable Instruments, Credit, and Bankruptcy

Agency and the Employment Relationship

Employment and Labor Regulations

Employment Discrimination

The Regulatory Process

Consumer Protection

Antitrust Law

Environmental Law

The International Legal Environment of Business

Filters