Question 1

Under the Sarbanes-Oxley Act,whistleblowers that suffer retaliation are able to recover civil damages and can be reinstated if terminated improperly.

Accepted Answer

A) True 
 B)False

Question 2

It is legal to sell a covered security during the prefiling period.

Accepted Answer

A) True 
 B)False

Question 3

The members of the Public Company Accounting Oversight Board are appointed by the

Accepted Answer

A)  president. 
B)  senate. 
C)  Federal Trade Commission. 
D)  congress. 
E)  Securities and Exchange Commission. 
A)  president. 
B)  senate. 
C)  Federal Trade Commission. 
D)  congress. 
E)  Securities and Exchange Commission.

Question 4

Congress,through the Public Company Accounting Oversight Board (PCAOB),limits the amount of damages private plaintiffs can recover and restricts attorney fees.

Accepted Answer

A) True 
 B)False

Question 5

The Securities and Exchange Commission has both quasi-legislative and quasi-judicial powers.

Accepted Answer

A) True 
 B)False

Question 6

What are tombstone ads and when do they occur?

Accepted Answer

Tombstone ads are brief announcements id

Question 7

______ refers to the intent of a defendant-seller to deceive or mislead.

Accepted Answer

A)  Handhabend 
B)  Double jeopardy 
C)  Per minas 
D)  Mens rea 
E)  Scienter 
A)  Handhabend 
B)  Double jeopardy 
C)  Per minas 
D)  Mens rea 
E)  Scienter

Question 8

In the registration process,the waiting period typically lasts

Accepted Answer

A)  10 days. 
B)  20 days. 
C)  30 days. 
D)  45 days. 
E)  60 days. 
A)  10 days. 
B)  20 days. 
C)  30 days. 
D)  45 days. 
E)  60 days.

Question 9

Which of the following statements is true of the Sarbanes-Oxley Act?

Accepted Answer

A)  The act can apply to international companies if they are registered with the Securities and Exchange Commission (SE
C) . 
B)  The act focuses on lessening the responsibilities of the auditors. 
C)  The act requires the auditors to have a close working relationship with the company's CFO, accounting staff, and other company officials. 
D)  The act is inapplicable to public companies. 
E)  The act mandates the certification of internal financial controls. 
A)  The act can apply to international companies if they are registered with the Securities and Exchange Commission (SE
C) . 
B)  The act focuses on lessening the responsibilities of the auditors. 
C)  The act requires the auditors to have a close working relationship with the company's CFO, accounting staff, and other company officials. 
D)  The act is inapplicable to public companies. 
E)  The act mandates the certification of internal financial controls.

Question 10

The Insider Trading and Securities Fraud Enforcement Act of 1988 provides that suits alleging illegal use of nonpublic information may be filed up to a maximum period of ______ years after the wrongful transaction.

Accepted Answer

A)  six 
B)  ten 
C)  eight 
D)  five 
E)  seven 
A)  six 
B)  ten 
C)  eight 
D)  five 
E)  seven

Question 11

What is the statute of limitations under Securities Act of 1934?

Accepted Answer

The statute of limitations is a defense

Question 12

The civil penalty provided by the Insider Trading and Securities Fraud Enforcement Act of 1988 for profits gained with nonpublic information is

Accepted Answer

A)  two years imprisonment. 
B)  return of illegal profits gained. 
C)  a recovery of double damages. 
D)  three times the profits gained. 
E)  a release of an equity court summons. 
A)  two years imprisonment. 
B)  return of illegal profits gained. 
C)  a recovery of double damages. 
D)  three times the profits gained. 
E)  a release of an equity court summons.

Question 13

The ______ regulates transfers of securities after the initial sale.

Accepted Answer

A)  Securities Exchange Act of 1934 
B)  Sherman Antitrust Act of 1890 
C)  Sarbanes-Oxley Act of 2002 
D)  Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 
E)  Securities Act of 1933 
A)  Securities Exchange Act of 1934 
B)  Sherman Antitrust Act of 1890 
C)  Sarbanes-Oxley Act of 2002 
D)  Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 
E)  Securities Act of 1933

Question 14

Under Rule 10b-5,plaintiffs are entitled to

Accepted Answer

A)  contemptuous damages. 
B)  consequential damages. 
C)  aggravated damages. 
D)  restitutionary damages. 
E)  punitive damages. 
A)  contemptuous damages. 
B)  consequential damages. 
C)  aggravated damages. 
D)  restitutionary damages. 
E)  punitive damages.

Question 15

What does Section 12 of the Securities Act of 1933 deal with?

Accepted Answer

Section 12 of the 1933 Act is divided in

Question 16

Which of the following statements is true of blue sky laws?

Accepted Answer

A)  The federal laws preempt the existence of state blue sky laws. 
B)  The method of regulation is uniform and same across all the states. 
C)  The laws can apply to securities subject to federal laws as well as to those securities exempt from the federal statutes. 
D)  The laws are commonly known as the antifraud laws as per the Securities Act of 1934. 
E)  The laws were established as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. 
A)  The federal laws preempt the existence of state blue sky laws. 
B)  The method of regulation is uniform and same across all the states. 
C)  The laws can apply to securities subject to federal laws as well as to those securities exempt from the federal statutes. 
D)  The laws are commonly known as the antifraud laws as per the Securities Act of 1934. 
E)  The laws were established as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

Question 17

Under the 1934 Act,a business organization found guilty of filing false or misleading documents with the Securities and Exchange Commission (SEC)may be fined up to

Accepted Answer

A)  $80,000,000. 
B)  $55,000,000. 
C)  $25,000,000. 
D)  $50,000,000. 
E)  $70,000,000. 
A)  $80,000,000. 
B)  $55,000,000. 
C)  $25,000,000. 
D)  $50,000,000. 
E)  $70,000,000.

Question 18

Due diligence defense requires that an expert prove that a reasonable investigation of the financial statements of the issuer and ______ was conducted.

Accepted Answer

A)  sellers 
B)  bailees 
C)  underwriters 
D)  controlling persons 
E)  guarantors 
A)  sellers 
B)  bailees 
C)  underwriters 
D)  controlling persons 
E)  guarantors

Question 19

What are the four common exemptions from blue sky laws that have been identified?

Accepted Answer

Individual states have varied in their a

Question 20

When is a prospectus issued? What is its purpose and what has the Securities and Exchange Commission (SEC)specified as requirements to be contained in the prospectus?

Accepted Answer

The prospectus is issued during the post

Exam 17: Financial and Securities Regulations

Under the Sarbanes-Oxley Act,whistleblowers that suffer retaliation are able to recover civil damages and can be reinstated if terminated improperly.

It is legal to sell a covered security during the prefiling period.

The members of the Public Company Accounting Oversight Board are appointed by the

Congress,through the Public Company Accounting Oversight Board (PCAOB),limits the amount of damages private plaintiffs can recover and restricts attorney fees.

The Securities and Exchange Commission has both quasi-legislative and quasi-judicial powers.

What are tombstone ads and when do they occur?

______ refers to the intent of a defendant-seller to deceive or mislead.

In the registration process,the waiting period typically lasts

Which of the following statements is true of the Sarbanes-Oxley Act?

The Insider Trading and Securities Fraud Enforcement Act of 1988 provides that suits alleging illegal use of nonpublic information may be filed up to a maximum period of ______ years after the wrongful transaction.

What is the statute of limitations under Securities Act of 1934?

The civil penalty provided by the Insider Trading and Securities Fraud Enforcement Act of 1988 for profits gained with nonpublic information is

The ______ regulates transfers of securities after the initial sale.

Under Rule 10b-5,plaintiffs are entitled to

What does Section 12 of the Securities Act of 1933 deal with?

Which of the following statements is true of blue sky laws?

Under the 1934 Act,a business organization found guilty of filing false or misleading documents with the Securities and Exchange Commission (SEC)may be fined up to

Due diligence defense requires that an expert prove that a reasonable investigation of the financial statements of the issuer and ______ was conducted.

What are the four common exemptions from blue sky laws that have been identified?

When is a prospectus issued? What is its purpose and what has the Securities and Exchange Commission (SEC)specified as requirements to be contained in the prospectus?

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