Exam 18: Securities Regulation

Regulation Fair Disclosure requires that public companies must file reports with the SEC to report significant financial developments whenever they happen.

The Securities Litigation Reform Act of 1995 repeals the 1934 Securities Act, replacing it with a statute that takes into account the use of computers and electronics in securities markets.

The Supreme Court, reviewing various SEC suits against those charged with insider trading, has held that all trading based on non-public information is illegal.

Regulation Fair Disclosure (FD) requires:

Proxy statements are permissible but not mandatory.

Members who violate the rules of a stock exchange can face:

The Securities Litigation Uniform Standards Act of 1998 requires:

The Securities Act of 1934 requires publicly held companies to file financial reports with the SEC and post them on the companies' websites.

According to SEC rules, a company that has fewer than 500 shareholders and does not allow its securities to be openly traded is called a:

Federal statutes provide for a maximum fine of $2.5 million per criminal action for violations of the law against insider trading. A person may also:

Liability for securities fraud is imposed only on the directors of a company.

You are on the subway in New York when you overhear two people you do not know talking about an upcoming merger, news not yet public. They seem to know their stuff. If you buy stock based on this information, and profit when the information turns out true, you have:

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

Registration of a prospectus for a new stock offering becomes effective:

The Securities Act of 1934 requires publicly held companies to file annual 10-K audited financial reports.

A prospective issuer of securities must hire which of the following:

While securities issued by banks are exempt from SEC registration requirements, they are subject to the SEC's anti-fraud and civil liability provisions.

A 10-K report is:

Although securities sold under a private placement exemption are exempt from registration, the law requires that investors be given a ____, which is similar to a prospectus.

Which of the following is a self-regulating organization that the SEC has the power to monitor: