Question 1

Securities must be registered under the 1933 Act or the 1934 Act for Rule 10b-5 to apply.

Accepted Answer

A) True 
 B)False

Question 2

The mandatory disclosure provision of the Securities Exchange Act of 1934 requires periodic disclosures from issuers of securities.

Accepted Answer

A) True 
 B)False

Question 3

Describe the liability provisions of the Securities Exchange Act of 1934 against insider trading, under Rule 10b-5 of the Securities Exchange Act of 1934.

Accepted Answer

The basic rule under the 1934 Act is tha

Question 4

Which of the following is true about Section 11 of the 1933 Act?

Accepted Answer

A)  To prove liability, a purchaser only has to prove that the defendant is in one of the three classes of persons liable under Section 11. 
B)  Directors who are not signers are not liable for false information after purchase of the security. 
C)  Under Section 11, the purchaser has the burden of proving that he or she exercised due diligence. 
D)  The defendant can escape liability if the purchaser did not read the registration statement. 
A)  To prove liability, a purchaser only has to prove that the defendant is in one of the three classes of persons liable under Section 11. 
B)  Directors who are not signers are not liable for false information after purchase of the security. 
C)  Under Section 11, the purchaser has the burden of proving that he or she exercised due diligence. 
D)  The defendant can escape liability if the purchaser did not read the registration statement.

Question 5

Under the 1934 Act, any profit made by an insider is recoverable by the issuer if the profit resulted from the purchase and sale (or the sale and purchase) within less than a three-year period of any class of the issuer's equity securities.

Accepted Answer

A) True 
 B)False

Question 6

The Securities Act of 1933 is a one-time disclosure statute, although some of its liability provisions purport to cover all fraudulent sales of securities.

Accepted Answer

A) True 
 B)False

Question 7

The executive branch of the Securities and Exchange Commission:

Accepted Answer

A)  decides whether a person has violated the securities statutes or not. 
B)  controls securities transactions by creating and passing regulations. 
C)  promulgates rules and regulations. 
D)  brings enforcement actions against alleged violators of the statutes. 
A)  decides whether a person has violated the securities statutes or not. 
B)  controls securities transactions by creating and passing regulations. 
C)  promulgates rules and regulations. 
D)  brings enforcement actions against alleged violators of the statutes.

Question 8

The Securities Act of 1933 is concerned primarily with public distributions of securities.

Accepted Answer

A) True 
 B)False

Question 9

Section 11 of the 1933 Act provides civil liabilities for damages resulting in an investor who finds, after purchasing the security, that the registration statement for the security contained an untrue statement or omitted a material fact.

Accepted Answer

A) True 
 B)False

Question 10

The mandamus is the basic selling document of a 1933 Act registered offering.

Accepted Answer

A) True 
 B)False

Exam 31: Securities Regulation

Securities must be registered under the 1933 Act or the 1934 Act for Rule 10b-5 to apply.

The mandatory disclosure provision of the Securities Exchange Act of 1934 requires periodic disclosures from issuers of securities.

Describe the liability provisions of the Securities Exchange Act of 1934 against insider trading, under Rule 10b-5 of the Securities Exchange Act of 1934.

Which of the following is true about Section 11 of the 1933 Act?

Under the 1934 Act, any profit made by an insider is recoverable by the issuer if the profit resulted from the purchase and sale (or the sale and purchase) within less than a three-year period of any class of the issuer's equity securities.

The Securities Act of 1933 is a one-time disclosure statute, although some of its liability provisions purport to cover all fraudulent sales of securities.

The executive branch of the Securities and Exchange Commission:

The Securities Act of 1933 is concerned primarily with public distributions of securities.

Section 11 of the 1933 Act provides civil liabilities for damages resulting in an investor who finds, after purchasing the security, that the registration statement for the security contained an untrue statement or omitted a material fact.

The mandamus is the basic selling document of a 1933 Act registered offering.

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Property

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remedies

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

The Agency Relationship-Creation, Duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Legal Liability of Accountants

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers

Introduction to Security

Security Interests in Personal Property

Bankruptcy

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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