1.
(p. 896)
If a violation of federal securities laws is serious enough to merit criminal prosecution,
the Fraud Section of the Securities and Exchange Commission prosecutes the action.
2.
(p. 896)
Banks themselves oversee the issuance of shares and bonds in Sweden.
3.
(p. 897)
The SEC issues opinions regarding the worth of securities.
4.
(p. 898)
Securities may be sold during the prefiling period.
5.
(p. 901)
Under the 1933 act, any security offered or sold to a permanent resident of the single
state where the issuer of the security resides and does business is exempt.
6.
(p. 901)
The average investor does not have to register securities when he or she wants to sell.
7.
(p. 902)
A person who violates the 1933 Securities Act can be fined but not sent to jail.
8.
(p. 902)
If an investor purchased securities and suffered damages as a result of an issuer’s false
or misleading statement, the investor is entitled to bring a civil suit to recover his or her losses.
9.
(p. 908)
Under the Securities Exchange Act of 1934, executive officers are not considered
statutory insiders.
10.
(p. 909)
The SEC may issue bounty payments to insider-trading whistle-blowers.
11.
(p. 895)
Which of the following did the appellate court rule in
Securities and Exchange
Commission v. Mutual Benefits Corp.
, the case in the text involving whether a viatical settlement
investment is an investment contract under securities laws?
12.
(p. 897)
Which of the following is
false
regarding the Mexican Securities Market?
13.
(p. 903)
Alice, a certified public accountant (CPA) made mistakes in auditing the financial
statements of ABC Company, a publicly traded corporation. Although Alice later became aware of
the mistake and knew ABC was soliciting investors, she kept quiet about it, and ABC proceeded
to sell stock without revealing the error. After ABC went bankrupt, investors sued Alice alleging
that she had primary liability under federal securities law. Which of the following is the most
likely result assuming the court follows the reasoning of David Overton and Jerome I. Kransdorf v.
Todman & Co., CPAs, P.C. and Trien, Rosenberg, Rosenberg, Weinberg, Ciullo & Fazzari, the case
in the text involving a similar situation?
14.
(p. 910)
Which of the following refers to the practice of an owner of a particular stock telling other
investors about the virtues of the stock, artificially increasing demand for the stock, and causing
an increase in price only to sell it for a quick profit?
15.
(p. 893)
Which of the following references stock and bonds issued by corporations to raise capital
for corporate expansion?
16.
(p. 893)
Which of the following is true regarding examples of securities?
17.
(p. 895)
Which of the following is true regarding federal acts regulating securities transactions?
18.
(p. 895)
Which of the following created the Securities and Exchange Commission?
19.
(p. 895)
The Securities and Exchange Commission is headed by how many individuals?
20.
(p. 895)
How are the heads of the Securities and Exchange Act chosen?
21.
(p. 895)
For how long does each member at the head of the Securities and Exchange Commission
serve?
22.
(p. 895)
Which of the following regulates how companies issue corporate securities?
23.
(p. 895)
Which of the following oversees the purchase and sale of securities?
24.
(p. 896)
Which of the following created the Public Company Accounting Oversight Board to
regulate public accounting firms?
25.
(p. 896)
Which of the following allows the SEC to suspend securities trading if prices vary
excessively in a short time period?
26.
(p. 896)
Which of the following permits the SEC to seek punishment of violators of foreign
securities laws?
27.
(p. 896)
Which of the following permits the SEC to exempt persons, securities, and transactions
from securities regulations?
28.
(p. 898)
Which of the following is the period beginning when an issuer begins to think about
issuing securities and ends when the issuer files the registration statement and prospectus with
the SEC?
29.
(p. 898)
Which of the following describes investment banking firms that purchase securities from
the issuing corporation with the intent of selling them to brokerage houses, which then sell them
to the public?