Exam 18: Securities Regulation

A possible way to save the expenses of registering a new security offering is to keep a security exempt from registration. One of these exemptions is called:

Insider trading is:

The Dodd-Frank Wall Street Reform and Consumer Protection Act is expected to eliminate most investment scams.

When a securities professional buys stock for her own account, then urges investors to buy the same stock so that the price will rise, and benefit her, has engaged in:

The ____ gave the SEC a statutory basis for prosecuting insider trading.

Equity financing differs from security financing in that, with equity financing, a company:

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

The rationale behind prohibiting insider trading is that:

Which of the following would never be liable for securities fraud in the preparation of materials sent to investors:

The Dodd-Frank Wall Street Reform and Consumer Protection Act imposed new regulations on the trading of derivatives.

Scalping is when a securities professional buys a stock for his own benefit and then urges investors to buy the stock to drive its price up for his benefit.

Securities professionals, such as stock brokers, may be fined by the SEC for rule violations, but the Supreme Court has held that they cannot be barred from the industry because that is an unjust taking.

The ____ increases regulatory oversight of financial markets, but not the way securities are issued or generally handled.

____ are sold directly to the public through the mail or Internet with no sales commission.

The Securities Act of 1934 requires publicly held companies to file 8-K reports anytime significant financial events occur.

Before the final version of a prospectus is approved by the SEC, the document is called a(n):

An investment in a common enterprise subject to the securities law includes those where each investor owns a specific part of the organization being financed, such as a construction partnership.

The buying and selling of futures and options is called:

In Latta v. Rainey the investment scam was run by a major New York investment firm that convinced investors to believe that the information provided must be true.

A securities registration statement consists of: