Exam 23: Rules Governing the Issuance and Trading of Securities

Which of the following acts exempts all documents given to the Securities and Exchange Commission by foreign regulators from Freedom of Information Act disclosure requirements?

The Securities and Exchange Commission (SEC) was created under the Securities Investor Protection Act (SIPA) of 1970.

The ________ gives the Securities and Exchange Commission cease-and-desist powers and the power to impose substantial monetary penalties in administrative proceedings.

No more than three of the five commissioners of the Securities and Exchange Commission can be ________.

Diane is the CEO of a U.S.-based pharmaceutical firm. Over the years, she has been purchasing significant amounts of stock in the company. The rejection of the company's new drug, by the FDA, resulted in a huge drop in the company's stock value. Diane knew of the rejection before it was made public and sold her stock. Diane is guilty of ________.

Amendments to the Securities Exchange Act in 1975 required any exchange or over-the-counter market to ________.

Which of the following was established by the Securities Investor Protection Act of 1970?

The Regulation Fair Disclosure (FD) required companies to ________.

The Securities and Exchange Commission recognizes an issuer that has reported continuously under the 1934 Securities Exchange Act for at least three years as a(n) ________.

Describe the exemptions from the registration process under the Securities Act of 1933.

David, the CEO of a bank in the U.S., has been embezzling money from the bank's clients. In order to avoid being caught, David destroyed all the financial records. Due to these actions, David can be prosecuted under the ________.

The Securities Exchange Act of 1934 regulates the ________.

The Securities Act of 1933 regulates the ________.

Which of the following is true of the Financial Stability Oversight Council?

Which of the following is true of the Securities Investor Protection Corporation (SIPC)?

Which of the following terms refers to buying out a hostile shareholder at a price far above the current price of the target company's stock in exchange for the hostile shareholder's agreement not to buy more shares for a period of time?

The Securities Act of 1933 regulates the initial offering of securities by public corporations by prohibiting an offer or sale of securities not registered with the Securities and Exchange Commission.