Exam 17: Financial and Securities Regulations

According to the Securities Act of 1933,a(n)______ is the individual or business organization offering a security for sale to the public.

A major stockholder of a corporation is most likely to be a(n)______ in the initial sale of securities who also has power over the issuer in such sales.

After the registration statement is filed,a ______ commences.

What are the three questions that a court will seek to answer when determining whether a person has purchased a security?

A tippee is liable for trading or passing on information that is public.

Proof of negligence leading to corporate mismanagement is enough to prove a case of seller's fraud under Rule 10b-5.

Explain the concept of fraud under Section 10(b)of the Securities Exchange Act of 1934.

An insider is any person who owns more than ______ percent of any security.

Which of the following sections of the Securities Act of 1933 deals with imposing liability on fraudulent interstate transactions?

The Consumer Financial Protection Board was established under the Dodd-Frank Act.

The blue sky laws can apply to securities subject to federal laws as well as to those securities exempt from the federal statutes.

What contributions does the Sarbanes-Oxley Act make in the area of corporate governance?

The Public Company Accounting Oversight Board (PCAOB)permits auditing firms to conduct a variety of nonauditing services.

Which of the following Acts created the Securities and Exchange Commission?

Plaintiffs can recover for harm done by false or misleading information in a prospectus even if the prospectus is not read or reviewed.