Exam 32: Overview of the Securities Market: Definition, Categories, and Regulation

In Reves v. Ernst & Young, the Court adopted the __________ in order to determine whether a promissory note fell under the jurisdiction of securities laws.

States are restricted from regulating __________ security(ies) listed on a stock exchange, mutual funds, or certain offerings that are exempt under federal securities law.

The SEC's __________ powers are primarily rooted in its role as a hearing tribunal for enforcing certain securities violations, including alleged indiscretions of brokers in their business dealings.

Intermediaries are financial institutions that provide services for investors and issuers related to securities transactions.

All securities regulation has the same rationale: to __________ investors and assure public confidence in the integrity of the securities market.

The Securities Act of __________ regulates the issuance of securities to public investors by requiring that companies file certain information intended to inform investors who are considering entering into a securities transaction.

On a bond, the face amount is also called the __________.

__________ are those institutions and entities that sell securities to investors.

The secondary market is largely regulated through the Securities Exchange Act of __________.

A minority of states have adopted all or substantially all of the Uniform Securities Act.

Issuing securities to the public markets for the first time is known as a/an __________.

Equity instruments represent ownership interests whereby financial return on the investment is based primarily on the performance of the venture that issued the securities.

The federal securities laws are rooted in the stock market crash of __________ and represent one of the major reforms offered in the New Deal era.

The SEC's national clearinghouse for public corporation disclosures and filings required by federal securities laws through the SEC's computer database is known as HOOVER.

The underlying premise of all securities regulation is exposure.

Stocks and bonds are the best-known types of securities that are regulated by federal law only.

The SEC's executive powers include the power to investigate potential violations of securities laws and regulations..

Unlike many administrative agencies, the SEC is a/an __________ agency that does not have a seat in the president's cabinet and is not subject to direct control by the president.

Securities statutes use a catchall definition of other __________ transactions in a more generic sense, including participation in profit-sharing agreements; collateral trust certificates; preorganization certificates or subscriptions; investment contracts; and a fractional, undivided interest in gas, oil, or other mineral rights.

__________ are financial institutions that provide services for investors and issuers related to securities transactions.