Question 1

The 10-K annual report is intended to update the information required in the 1934 Act registration statement.

Accepted Answer

A) True 
 B)False

Question 2

When a security is sold in exempt transaction,all its subsequent sales are also covered by the exemption.

Accepted Answer

A) True 
 B)False

Question 3

The Williams Act amendments to the 1934 Act were designed to:

Accepted Answer

A)   provide penalties for fraudulent sales and permit the issuance of injunctions to protect investors from anticipated fraudulent acts.
B)   protect investors from promoters and security salespersons who offered stock in companies organized to pursue visionary schemes.
C)   force corporations to comply with stockholders' social goals of meeting the EPA's new source emission standards.
D)   give the bidder and the target company equal opportunities to present their cases to the shareholders.E) All of the above
F) C) and D)

Question 4

Describe the Foreign Corrupt Practices Act and the reason for its enactment.

Accepted Answer

In an attempt to prevent bribery and oth...

Question 5

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 6

The Securities Act of 1933:

Accepted Answer

A)   is concerned primarily with private distributions of securities and does not provide provisions to cover fraudulent sale of securities.
B)   regulates the sale of securities while they are passing from the hands of the issuer into the hands of the private investors.
C)   requires that issuers selling securities publicly make necessary disclosures at the time the issuer sells the securities to the public.
D)   requires that all material information about the issuer be disclosed.E) A) and C)
F) B) and D)

Question 7

Why are some securities exempted from the registration provisions of the 1933 Act? Give two examples of such securities.Are they exempted from the antifraud provisions of the act as well?

Accepted Answer

Examples may vary.Some securities are ex...

Question 8

Jack Monroe had bought 200 GE common shares on the New York Stock Exchange that he could easily sell without any SEC registration.Jack was able to do so because:

Accepted Answer

A)   it was not a large number of shares.
B)   he wasn't selling an insurance policy.
C)   it was a nonprofit private offering.
D)   he was not an issuer, underwriter, or dealer.E) All of the above
F) A) and D)

Question 9

A person with inside information must either disclose the information before trading or refrain from trading.

Accepted Answer

A) True 
 B)False

Question 10

Section 11 of the 1933 Act is considered a radical liability section because the defendant has the burden of proving that he exercised due diligence.

Accepted Answer

A) True 
 B)False

Exam 31: Securities Regulation

Jack Monroe had bought 200 GE common shares on the New York Stock Exchange that he could easily sell without any SEC registration.Jack was able to do so because:

Correct Answer
verified

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.

Correct Answer
verified

When a security is sold in exempt transaction,all its subsequent sales are also covered by the exemption.

Correct Answer
verified

Section 11 of the 1933 Act is considered a radical liability section because the defendant has the burden of proving that he exercised due diligence.

Correct Answer
verified

Why are some securities exempted from the registration provisions of the 1933 Act? Give two examples of such securities.Are they exempted from the antifraud provisions of the act as well?

Correct Answer
verified
Examples may vary.Some securities are ex...
View Answer

The 10-K annual report is intended to update the information required in the 1934 Act registration statement.

Correct Answer
verified

The Securities Act of 1933:

Correct Answer
verified

A person with inside information must either disclose the information before trading or refrain from trading.

Correct Answer
verified

The Williams Act amendments to the 1934 Act were designed to:

Correct Answer
verified

Describe the Foreign Corrupt Practices Act and the reason for its enactment.

Correct Answer
verified
In an attempt to prevent bribery and oth...
View Answer

Exam 31: Securities Regulation

Jack Monroe had bought 200 GE common shares on the New York Stock Exchange that he could easily sell without any SEC registration.Jack was able to do so because:

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

When a security is sold in exempt transaction,all its subsequent sales are also covered by the exemption.

Correct AnswerverifiedShow Answer

Section 11 of the 1933 Act is considered a radical liability section because the defendant has the burden of proving that he exercised due diligence.

Correct AnswerverifiedShow Answer

Why are some securities exempted from the registration provisions of the 1933 Act? Give two examples of such securities.Are they exempted from the antifraud provisions of the act as well?

Correct AnswerverifiedExamples may vary.Some securities are ex...View AnswerShow Answer

The 10-K annual report is intended to update the information required in the 1934 Act registration statement.

Correct AnswerverifiedShow Answer

The Securities Act of 1933:

Correct AnswerverifiedShow Answer

A person with inside information must either disclose the information before trading or refrain from trading.

Correct AnswerverifiedShow Answer

The Williams Act amendments to the 1934 Act were designed to:

Correct AnswerverifiedShow Answer

Describe the Foreign Corrupt Practices Act and the reason for its enactment.

Correct AnswerverifiedIn an attempt to prevent bribery and oth...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Examples may vary.Some securities are ex...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In an attempt to prevent bribery and oth...
View Answer