Exam 41: Investor Protection, e-Securities, and Wall Street Reform

Small businesses can file ________ with the SEC if they plan on raising $1 million or less from the public issue of securities.

An investment contract is a flexible standard for defining a security.

Which of the following has the largest trading volume of any securities exchange in the world?

Who among the following is considered a statutory insider?

An issuer who plans on raising $1 million or less from the public must answer the questions on Form U-7,which then becomes the offering circular that must be given to prospective investors.

A tipper cannot be held liable for the profits made by the tippee.

The ________ is a federal statute that permits the SEC to obtain a civil penalty of up to three times the illegal benefits received from insider trading.

The SEC is concerned with regulating issues and trading of securities alone and cannot regulate the activities of securities brokers and advisors.

A(n)________ is an exemption from registration which states that securities transactions not made by an issuer,an underwriter,or a dealer do not have to be registered with the SEC.

Section 5 of the Securities Act of 1933 requires an issuer to register its securities with the SEC prior to selling them to the public.

How does a company sell its shares to the public for the first time? Explain the contents of a registration statement.

The Securities Act of 1933 is a federal statute that primarily regulates the issue of securities by companies and other businesses.

Defendants cannot assert a due diligence defense against liabilities arising from the violation of Section 11 of the Securities Act of 1933.

Only an established company is permitted to sell new securities to the public.

Which of the following is enough to prove a violation of Section 10(b)and Rule 10b-5?

Which of the following is true of a Regulation A offering?

A(n)________ is a person who discloses material nonpublic information to another person.

The Securities Act of 1933 regulates the purchase and sale of securities online.

An issuer is permitted to assert a due diligence defense against the imposition of Section 11 liability.

List the securities exempt from registration with the SEC.