1
Which of the following begins on the effective date when new offerings may be sold and, at this point, the final prospectus must be provided to purchasers?
Post-Registration Period
Suppose Sanderson Inc. is a firm engaging in municipal advisory activities. Sanderson Inc. must register with which of the following?
MSRB (Municipal Securities Rulemaking Boar)
Founded in 1973, which of the following is the largest options exchange in the United States?
Chicago Board Options Exchange (Cboe)
Which of the following is the central bank of the United States responsible for the nation's monetary policy?
Which of the following is best described as a pattern of expansion and contraction in economic activity?
A Business Cycle
Which of the following is the government agency responsible for the regulation of the U.S. securities market?
The Securities and Exchange Commission (SEC)
Suppose Susan & Co. is a full-service broker-dealer offering investment banking and securities services to clients with more complex financial needs. Susan & Co. provides services including securities lending, leveraged trade executions, and cash management. Susan & Co. fits into which of the following categories of broker-dealer?
Prime Broker
Before an IPO can go public, the company or issuer must first register the offering and file a registration statement (Form S-1) with which of the following?
SEC
In the context of financial analysis, which of the following refers to the ability of a company to meet its short-term cash needs, such as paying its suppliers?
Liquidity
Although the SEC is the government agency that has overall authority for supervising the securities industry, it delegates much of the day-to-day supervisory activity to which of the following?
SROs (self regulatory organizations)
A final prospectus must be provided to buyers before the purchase of new issue. Additionally, if an issuer is not currently registered with the SEC, the prospectus must be provided or made available within how many days after the effective date to a purchaser in the IPO?
90 Days
Suppose a syndicate is operating under the terms of an eastern account. If the firm has a 9% allocation, how many unsold bonds will the firm take into its firm account even if it is responsible for selling half of all bonds sold?
9%
Which of the following is NOT an example of a material event?
A) Change of auditing firm
B) Declaration of a stock split
C) Declaration of a tender offer
D) Informal offer
D) Informal offer
The '34 Act created what?
A) The FDIC and gave it regulatory authority over the secondary markets
B) The SEC and gave it regulatory authority over the primary and secondary markets
C) The SOX and gave it regulatory authority over the primary and secondary markets
D) The PCAOB and gave it regulatory authority over the primary markets
B) The SEC and gave it regulatory authority over the primary and secondary markets
Which markets involves trades between institutional investors on an over-the-counter electronic communication network?
Fourth market
Suppose Company JKL, a brokerage firm, is financially troubled and holds $1,000,000 of Laura's securities and cash. How much of this amount is protected under the SIPC?
$500,000
The '34 Act requires ongoing disclosures by issuers of a specific size via annual and quarterly filings with the SEC. This includes periodic reporting of company earnings and financial condition by companies with more than how much assets and whose shares are held by more than how many owners?
$10 million; 500 owners
Which of the following should investors look to for guidance concerning the tax implications of holding, buying, and selling various types of securities?
A) FINRA
B) EC
C) IRS
D) Broker-Dealer
C) IRS
Which of the following refers to trading by non-exchange member broker-dealers and institutional investors of exchange-listed securities in the over-the-counter (OTC) market?
A) the traditional market
B) the third market
C) the compliance market
D) the negotiated market
B) the third market
Which of the following is true regarding the role the Fed plays in setting fiscal policy?
A) The Fed is solely responsible for setting fiscal policy.
B) The Fed plays a large role in setting fiscal policy.
C) The Fed plays a small but important role in setting fiscal policy.
D) The Fed plays no role in setting fiscal policy.
D) The Fed plays no role in setting fiscal policy.
Which of the following best describes the functions of a transfer agent?
A) The transfer agent functions are never completed by a trust company or bank
B) The transfer agent performs the recordkeeping functions for a fund, including tracking the number of shares owned by each investor
C) The transfer agent is responsible for sending out shareholder mailings, but cannot issue new shares
D) The transfer agent distributes capital gains or dividends, but does not handle lost, stolen or destroyed certificates
B) The transfer agent performs the recordkeeping functions for a fund, including tracking the number of shares owned by each investor
Although different methods are used, the goals of fiscal and monetary policy are the same, which are:
A) at least 79% employment and low interest rates
B) high interest rates and reasonable employment
C) full employment and price stability
D) high employment and price instability
C) full employment and price stability
The ___ is the interest rate that banks charge to one another for loans of excess funds.
Fed Funds Rate
Which of the following are best described as legal entities, such as corporations, investment funds, or other government entities, that issue or propose to offer securities to investors?
A) Municipal advisors
B) Transfer agents
C) Brokerage firms
D) Issuers
D) Issuers
Regulation Crowdfunding provides an exemption for crowdfunding transactions by an issuer provided they meet specific requirements, including a cap on the amount being in any 12-month period of:
1,000,000