Question 1

"Insider trading" rules pertain to:

Accepted Answer

A) tippees. 
B) officers. 
C) directors. 
D) underwriters. 
E) All of the above. 
A) tippees. 
B) officers. 
C) directors. 
D) underwriters. 
E) All of the above.

Question 2

The Securities Act of 1934 imposes sanctions for noncompliance with its disclosure and antifraud requirements.These sanctions include:

Accepted Answer

A) civil liability to injured investors and issuers. 
B) civil penalties. 
C) criminal penalties. 
D) All of the above. 
A) civil liability to injured investors and issuers. 
B) civil penalties. 
C) criminal penalties. 
D) All of the above.

Question 3

Every registration filed with the SEC is held in confidence until the business permits disclosure.

Accepted Answer

A) True 
 B)False

Question 4

The SEC established a computer system that performs automated collection, validation, indexing, acceptance, and dissemination of reports required to be filed with the SEC.It is known as:

Accepted Answer

A) ELMER. 
B) EDGAR. 
C) electronic delivery. 
D) SEC-ELS. 
A) ELMER. 
B) EDGAR. 
C) electronic delivery. 
D) SEC-ELS.

Question 5

The Klodhoffer Corporation has assets amounting to $2,000,000 and needs additional capital to finance expansion of its marketing operation.The board of directors decides to promote an issue of $500,000 of common stock in order to raise capital.At the time the stock is issued, Klodhoffer has 250 shareholders owning common stock.If Klodhoffer is to trade the stock over the counter, does it need to register with the SEC?

Accepted Answer

Klodhoffer has assets less than $5,000,0

Question 6

Which of the following is NOT a purpose of federal securities regulation?

Accepted Answer

A) To ensure that only worthwhile securities are sold in interstate commerce. 
B) To ensure adequate disclosure by issuers of securities. 
C) To ensure that inside information is not abused. 
D) To prevent the use of fraud in the marketing of securities. 
A) To ensure that only worthwhile securities are sold in interstate commerce. 
B) To ensure adequate disclosure by issuers of securities. 
C) To ensure that inside information is not abused. 
D) To prevent the use of fraud in the marketing of securities.

Question 7

The 1933 Act imposes liability for material misstatements and omission in a registration statement on:

Accepted Answer

A) only the directors and certain officers. 
B) only the issuers. 
C) experts and underwriters as well as directors, officers, and issuers. 
D) the CEO only. 
A) only the directors and certain officers. 
B) only the issuers. 
C) experts and underwriters as well as directors, officers, and issuers. 
D) the CEO only.

Question 8

A registration statement must be signed by its issuer, its CEO, CFO, CAO and majority of its board of directors.

Accepted Answer

A) True 
 B)False

Question 9

__________, promulgated by the SEC, provides a nonexclusive safe harbor for securing the intrastate exemption.

Accepted Answer

A) Rule 506. 
B) Rule 505. 
C) Rule 147. 
D) Rule 504. 
A) Rule 506. 
B) Rule 505. 
C) Rule 147. 
D) Rule 504.

Question 10

Bonds are included in the definition of the term "security."

Accepted Answer

A) True 
 B)False

Question 11

Section 11 of the Securities Act of 1933 imposes liability on:

Accepted Answer

A) the issuer. 
B) all persons who signed the registration statement. 
C) every director or partner, and all underwriters. 
D) All of the above. 
A) the issuer. 
B) all persons who signed the registration statement. 
C) every director or partner, and all underwriters. 
D) All of the above.

Question 12

In 2006, the SEC abolished the requirement that a registration statement disclose compensation paid to senior executives and directors.

Accepted Answer

A) True 
 B)False

Question 13

The tender offer is open to select holders of the class of shares subject to the tender offer.

Accepted Answer

A) True 
 B)False

Exam 40: Securities Regulation

"Insider trading" rules pertain to:

The Securities Act of 1934 imposes sanctions for noncompliance with its disclosure and antifraud requirements.These sanctions include:

Every registration filed with the SEC is held in confidence until the business permits disclosure.

The SEC established a computer system that performs automated collection, validation, indexing, acceptance, and dissemination of reports required to be filed with the SEC.It is known as:

Which of the following is NOT a purpose of federal securities regulation?

The 1933 Act imposes liability for material misstatements and omission in a registration statement on:

A registration statement must be signed by its issuer, its CEO, CFO, CAO and majority of its board of directors.

__________, promulgated by the SEC, provides a nonexclusive safe harbor for securing the intrastate exemption.

Bonds are included in the definition of the term "security."

Section 11 of the Securities Act of 1933 imposes liability on:

In 2006, the SEC abolished the requirement that a registration statement disclose compensation paid to senior executives and directors.

The tender offer is open to select holders of the class of shares subject to the tender offer.

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer

Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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