Question 1

All of the following major firms have been accused of securities fraud except:

Accepted Answer

A) Technical Equities Corporation. 
B) Charles Schwab. 
C) Prudential Securities. 
D) E.F.Hutton. 
A) Technical Equities Corporation. 
B) Charles Schwab. 
C) Prudential Securities. 
D) E.F.Hutton.

Question 2

What is insider trading and why is it considered a crime? Who are the victims?

Accepted Answer

Insider trading is defined as stockholde

Question 3

Junk bonds have been blamed for causing financial problems in what other industry besides the securities industry?

Accepted Answer

A) Savings and loan 
B) Energy 
C) Health care 
D) Defense 
A) Savings and loan 
B) Energy 
C) Health care 
D) Defense

Question 4

Explore Warren Buffett's idea for a 100% tax on stocks owned a year or less.Is the liquidity argument valid?

Accepted Answer

Opinion-ba

Question 5

The most publicized of Internet investment schemes involve microcap fraud, often called penny stocks or over-the-counter stocks.

Accepted Answer

A) True 
 B)False

Question 6

All of the following are true about the Martha Stewart criminal case except:

Accepted Answer

A) Stewart bought stock based on information from a corporate insider. 
B) Stewart was not convinced of insider trading. 
C) Stewart's financial gain was negligible in light of her wealth. 
D) Stewart was a former stockbroker. 
A) Stewart bought stock based on information from a corporate insider. 
B) Stewart was not convinced of insider trading. 
C) Stewart's financial gain was negligible in light of her wealth. 
D) Stewart was a former stockbroker.

Question 7

Economy refers to activities organized around the production and distribution of goods and services.

Accepted Answer

A) True 
 B)False

Question 8

Milken agreed to pay a $600 million fine and serve ______________ years in prison.

Accepted Answer

A) 5 
B) 2 
C) 10 
D) 20 
A) 5 
B) 2 
C) 10 
D) 20

Question 9

The Great "Chat Room" Conspiracy is notable for two reasons:

Accepted Answer

A) broker-dealers were charged and sentenced to prison. 
B) the source of the information and the insiders involved. 
C) the amount of money involved and the government's inability to track wrongdoing. 
D) the number of people involved and their occupations. 
A) broker-dealers were charged and sentenced to prison. 
B) the source of the information and the insiders involved. 
C) the amount of money involved and the government's inability to track wrongdoing. 
D) the number of people involved and their occupations.

Question 10

Discuss the various approaches to eliminating or reducing insider trading.

Accepted Answer

Answers may include Warren Buf

Question 11

How has corporate effectiveness of general deterrence measures and special deterrence punishment affected the incidence of insider trading? Have businessmen in general and accused individuals in particular learned that crime does not pay when it comes to insider trading?

Accepted Answer

Deterrence has not been more successful

Question 12

President George W.Bush sold his stock in Harkin Oil for an $835,000 profit eight days before huge losses were disclosed and Harkin stock value dropped like a rock. Bush denied any prior knowledge about the red ink in the audit report. This was unusual in that:

Accepted Answer

A) he signed the report. 
B) he was president of the company at the time. 
C) he was a member of the audit committee. 
D) his degree is in accounting. 
A) he signed the report. 
B) he was president of the company at the time. 
C) he was a member of the audit committee. 
D) his degree is in accounting.

Question 13

Dennis Levine was involved in what aspect of the stock trade?

Accepted Answer

A) Mergers and acquisitions 
B) Arbitrage 
C) Investment banking 
D) International finance 
A) Mergers and acquisitions 
B) Arbitrage 
C) Investment banking 
D) International finance

Question 14

Match between columns
                        Premises: Downsizing
Ivan Boesky
Front-running
Economy
Bernie Madoff
Insider trading
Michael Milken
Pump and dump

Accepted Answer

The Answer of A technique where the salesman pumps up is...

Question 15

Insider traders are stockholders, directors, officers, or any recipients of information not publicly available who take advantage of such limited disclosure for their own benefit.

Accepted Answer

A) True 
 B)False

Question 16

In 2003, the Securities and Exchange Commission announced $1.4 billion in fines and disgorged profits against the nation's biggest and most powerful brokerage firms. At the root of the penalties was:

Accepted Answer

A) recommending stock to investors while privately criticizing the stocks. 
B) buying stocks for the firm before making recommendations to clients. 
C) failing to make investments requested by clients. 
D) charging excess fees. 
A) recommending stock to investors while privately criticizing the stocks. 
B) buying stocks for the firm before making recommendations to clients. 
C) failing to make investments requested by clients. 
D) charging excess fees.

Question 17

Which one of the following terms is associated with the idea that less regulation is better for the securities industry despite the number of securities violations?

Accepted Answer

A) Level playing field 
B) Fixed race 
C) Fairness 
D) Laissez faire 
A) Level playing field 
B) Fixed race 
C) Fairness 
D) Laissez faire

Question 18

Arbitragers are investment specialists who specialize in ________________ stocks.

Accepted Answer

The answer of Arbitragers are investment specialists who specialize in...

Question 19

The investigation that snared Dennis Levine took notice of all of the following except:

Accepted Answer

A) a proposed merger, trade, or acquisition would occur. 
B) a Swiss bank in the Bahamas. 
C) heavier-than-usual sales would take place involving companies that would later be involved in a merger, trade, or acquisition. 
D) the trades all involved Levin's firm. 
A) a proposed merger, trade, or acquisition would occur. 
B) a Swiss bank in the Bahamas. 
C) heavier-than-usual sales would take place involving companies that would later be involved in a merger, trade, or acquisition. 
D) the trades all involved Levin's firm.

Question 20

"Pump and Dump" is a technique used by individuals, such as the teenage wheeler-dealer, where:

Accepted Answer

A) the investor pumps up his financial worth, steals the money to invest, and quickly dumps the stock. 
B) the salesman pumps up the stock and then dumps his investment into the stocks. 
C) a corporate insider pumps up the value of company stock and then dumps bad loans into the business before the business is sold. 
D) the salesman pumps up his qualifications and secretly dumps the investors' stock. 
A) the investor pumps up his financial worth, steals the money to invest, and quickly dumps the stock. 
B) the salesman pumps up the stock and then dumps his investment into the stocks. 
C) a corporate insider pumps up the value of company stock and then dumps bad loans into the business before the business is sold. 
D) the salesman pumps up his qualifications and secretly dumps the investors' stock.

All of the following major firms have been accused of securities fraud except:

What is insider trading and why is it considered a crime? Who are the victims?

Junk bonds have been blamed for causing financial problems in what other industry besides the securities industry?

Explore Warren Buffett's idea for a 100% tax on stocks owned a year or less.Is the liquidity argument valid?

The most publicized of Internet investment schemes involve microcap fraud, often called penny stocks or over-the-counter stocks.

All of the following are true about the Martha Stewart criminal case except:

Economy refers to activities organized around the production and distribution of goods and services.

Milken agreed to pay a $600 million fine and serve ______________ years in prison.

The Great "Chat Room" Conspiracy is notable for two reasons:

Discuss the various approaches to eliminating or reducing insider trading.

How has corporate effectiveness of general deterrence measures and special deterrence punishment affected the incidence of insider trading? Have businessmen in general and accused individuals in particular learned that crime does not pay when it comes to insider trading?

President George W.Bush sold his stock in Harkin Oil for an $835,000 profit eight days before huge losses were disclosed and Harkin stock value dropped like a rock. Bush denied any prior knowledge about the red ink in the audit report. This was unusual in that:

Dennis Levine was involved in what aspect of the stock trade?

Insider traders are stockholders, directors, officers, or any recipients of information not publicly available who take advantage of such limited disclosure for their own benefit.

In 2003, the Securities and Exchange Commission announced $1.4 billion in fines and disgorged profits against the nation's biggest and most powerful brokerage firms. At the root of the penalties was:

Which one of the following terms is associated with the idea that less regulation is better for the securities industry despite the number of securities violations?

Arbitragers are investment specialists who specialize in ________________ stocks.

The investigation that snared Dennis Levine took notice of all of the following except:

"Pump and Dump" is a technique used by individuals, such as the teenage wheeler-dealer, where:

Introduction

Crimes Against Consumers

Unsafe Products

Environmental Crime

Institutional Corruption: Mass Media and Religion

Corporate Fraud

Fiduciary Fraud

Crimes by the Government

Corruption of Public Officials

Medical Crime

Computer Crime

Conclusions

Filters

Exam 6: Securities Fraud

All of the following major firms have been accused of securities fraud except:

What is insider trading and why is it considered a crime? Who are the victims?

Junk bonds have been blamed for causing financial problems in what other industry besides the securities industry?

Explore Warren Buffett's idea for a 100% tax on stocks owned a year or less.Is the liquidity argument valid?

The most publicized of Internet investment schemes involve microcap fraud, often called penny stocks or over-the-counter stocks.

All of the following are true about the Martha Stewart criminal case except:

Economy refers to activities organized around the production and distribution of goods and services.

Milken agreed to pay a $600 million fine and serve ______________ years in prison.

The Great "Chat Room" Conspiracy is notable for two reasons:

Discuss the various approaches to eliminating or reducing insider trading.

How has corporate effectiveness of general deterrence measures and special deterrence punishment affected the incidence of insider trading? Have businessmen in general and accused individuals in particular learned that crime does not pay when it comes to insider trading?

President George W.Bush sold his stock in Harkin Oil for an $835,000 profit eight days before huge losses were disclosed and Harkin stock value dropped like a rock. Bush denied any prior knowledge about the red ink in the audit report. This was unusual in that:

Dennis Levine was involved in what aspect of the stock trade?

Insider traders are stockholders, directors, officers, or any recipients of information not publicly available who take advantage of such limited disclosure for their own benefit.

In 2003, the Securities and Exchange Commission announced $1.4 billion in fines and disgorged profits against the nation's biggest and most powerful brokerage firms. At the root of the penalties was:

Which one of the following terms is associated with the idea that less regulation is better for the securities industry despite the number of securities violations?

Arbitragers are investment specialists who specialize in ________________ stocks.

The investigation that snared Dennis Levine took notice of all of the following except:

"Pump and Dump" is a technique used by individuals, such as the teenage wheeler-dealer, where:

Introduction

Crimes Against Consumers

Unsafe Products

Environmental Crime

Institutional Corruption: Mass Media and Religion

Corporate Fraud

Fiduciary Fraud

Crimes by the Government

Corruption of Public Officials

Medical Crime

Computer Crime

Conclusions

Filters