Question 1

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 2

The issuer of a registration statement has strict liability for its accuracy.

Accepted Answer

A) True 
 B)False

Question 3

The rule that prohibits schemes and devices to defraud investors is Rule:

Accepted Answer

A) 504 
B) 144 
C) 10b-5 
D) 16(b) 
A) 504 
B) 144 
C) 10b-5 
D) 16(b)

Question 4

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 5

Under the Dodd-Frank Act,the SEC must issue rules requiring issuers to disclose in annual proxy statements the reasons the issuer has chosen to combine or separate the positions of CEO and chairman of the board of directors.

Accepted Answer

A) True 
 B)False

Question 6

The SEC defined electronic media to include:

Accepted Answer

A) audiotapes. 
B) facsimiles. 
C) videotapes. 
D) All of the above. 
E) None of the above. 
A) audiotapes. 
B) facsimiles. 
C) videotapes. 
D) All of the above. 
E) None of the above.

Question 7

The 1995 Private Securities Litigation Reform Act grants authority to the SEC to bring civil actions against aiders and abettors for certain violations of the 1934 Act.

Accepted Answer

A) True 
 B)False

Question 8

The Securities Enforcement Remedies and Penny Stock Reform Act of 1990 granted the SEC the power to issue cease and desist orders and to impose civil penalties.

Accepted Answer

A) True 
 B)False

Question 9

The Private Securities Litigation Reform Act sought to prevent abuses in private securities fraud lawsuits.

Accepted Answer

A) True 
 B)False

Question 10

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) EVRAD. 
B) Electronic Data Gathering, Analysis, and Retrieval. 
C) electronic delivery. 
D) SEC-ELS. 
A) EVRAD. 
B) Electronic Data Gathering, Analysis, and Retrieval. 
C) electronic delivery. 
D) SEC-ELS.

Question 11

"Restricted securities" are exempted from registration.

Accepted Answer

A) True 
 B)False

Question 12

A solicitation of proxies from holders of stock:

Accepted Answer

A) is comprehensively regulated by the SEC. 
B) includes a request for a proxy, but not a request to revoke a proxy. 
C) gives any security holder entitled to vote the opportunity to communicate with other security holders. Upon written request, the corporation must mail the communication at the corporation's expense along with the solicitation. 
D) All of these are correct. 
A) is comprehensively regulated by the SEC. 
B) includes a request for a proxy, but not a request to revoke a proxy. 
C) gives any security holder entitled to vote the opportunity to communicate with other security holders. Upon written request, the corporation must mail the communication at the corporation's expense along with the solicitation. 
D) All of these are correct.

Question 13

Which of the following is a basic objective of the 1933 Securities Act?

Accepted Answer

A) To provide investors with material information concerning securities offered for sale to the public. 
B) To prohibit misrepresentation, deceit, and other fraudulent acts and unfair practices in the sale of securities generally, whether or not they are required to be registered. 
C) Both (a) and (b). 
D) None of the above. 
A) To provide investors with material information concerning securities offered for sale to the public. 
B) To prohibit misrepresentation, deceit, and other fraudulent acts and unfair practices in the sale of securities generally, whether or not they are required to be registered. 
C) Both (a) and (b). 
D) None of the above.

Question 14

In 1992,the SEC issued new rules establishing an integrated registration and reporting system for small business issuers.

Accepted Answer

A) True 
 B)False

Question 15

Discuss how the Dodd-Frank Act affects: (a)the SEC's authority regarding aiders and abettors of securities law violators, (b)whistleblowing,and (c)disclosure requirements in annual proxy statements regarding executive compensation.

Accepted Answer

(a)The Dodd-Frank Wall Street Reform and

Question 16

The Sarbanes-Oxley Act:

Accepted Answer

A) allows the SEC to add criminal penalties to a disgorgement fund for the benefit of victims of violations of the 1933 and 1934 securities acts. 
B) requires an outside CPA and the corporate treasurer to certify the financial and other information contained in the issuer's annual and quarterly reports. 
C) requires that issuers of securities disclose in plain English to the public on a rapid and current basis such additional information concerning material changes in the financial condition or operations of the issuer as the SEC determines is necessary or useful. 
D) All of the above. 
A) allows the SEC to add criminal penalties to a disgorgement fund for the benefit of victims of violations of the 1933 and 1934 securities acts. 
B) requires an outside CPA and the corporate treasurer to certify the financial and other information contained in the issuer's annual and quarterly reports. 
C) requires that issuers of securities disclose in plain English to the public on a rapid and current basis such additional information concerning material changes in the financial condition or operations of the issuer as the SEC determines is necessary or useful. 
D) All of the above.

Question 17

Prohibited bribery can result in fines and imprisonment under the antibribery provision of :

Accepted Answer

A) the Private Securities Litigation Reform Act. 
B) the Foreign Corrupt Practices Act. 
C) the Securities and Exchange Commission. 
D) None of the above. 
A) the Private Securities Litigation Reform Act. 
B) the Foreign Corrupt Practices Act. 
C) the Securities and Exchange Commission. 
D) None of the above.

Question 18

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 19

Securities that are exempt from registration under the federal securities laws include:

Accepted Answer

A) securities of domestic banks. 
B) annuity contracts issued by state-regulated insurance companies. 
C) bonds issued by a city. 
D) All of the above are exempt. 
A) securities of domestic banks. 
B) annuity contracts issued by state-regulated insurance companies. 
C) bonds issued by a city. 
D) All of the above are exempt.

Question 20

The SEC may not advance the effective date of a registration statement.

Accepted Answer

A) True 
 B)False

Exam 39: Securities Regulation

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

The issuer of a registration statement has strict liability for its accuracy.

The rule that prohibits schemes and devices to defraud investors is Rule:

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

Under the Dodd-Frank Act,the SEC must issue rules requiring issuers to disclose in annual proxy statements the reasons the issuer has chosen to combine or separate the positions of CEO and chairman of the board of directors.

The SEC defined electronic media to include:

The 1995 Private Securities Litigation Reform Act grants authority to the SEC to bring civil actions against aiders and abettors for certain violations of the 1934 Act.

The Securities Enforcement Remedies and Penny Stock Reform Act of 1990 granted the SEC the power to issue cease and desist orders and to impose civil penalties.

The Private Securities Litigation Reform Act sought to prevent abuses in private securities fraud lawsuits.

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:

"Restricted securities" are exempted from registration.

A solicitation of proxies from holders of stock:

Which of the following is a basic objective of the 1933 Securities Act?

In 1992,the SEC issued new rules establishing an integrated registration and reporting system for small business issuers.

Discuss how the Dodd-Frank Act affects: (a)the SEC's authority regarding aiders and abettors of securities law violators, (b)whistleblowing,and (c)disclosure requirements in annual proxy statements regarding executive compensation.

The Sarbanes-Oxley Act:

Prohibited bribery can result in fines and imprisonment under the antibribery provision of :

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

Securities that are exempt from registration under the federal securities laws include:

The SEC may not advance the effective date of a registration statement.

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 and 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

Filters