Question 1

The ________ is a federal statute that primarily regulates the issue of securities by companies and other businesses.

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Question 2

The Securities and Exchange Commission is an administrative agency composed of five members who are appointed by the ________.

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Question 3

Insider trading in the purchase and sale of securities in the after markets is prohibited under the statute of the ________.

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Question 4

________ occurs when a company employee or company advisor uses material nonpublic information to make a profit by trading in the securities of the company.

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Question 5

Issuers with offerings exceeding $100,000 must file a(n)________ with the SEC.

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Question 6

A(n)________ issued by the SEC indicates that a defendant agrees not to violate securities laws in the future but does not admit to having violated securities laws in the past.

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Question 7

A(n)________ is a financial instrument whose value is determined by the price movements of another asset.

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Question 8

Debentures are an example of ________ securities.

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Question 9

The sale of securities by an issuer to the public is known as ________.

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Question 10

An exemption from registration which states that securities transactions not made by an issuer, an underwriter, or a dealer do not have to be registered with the SEC is known as known as a(n)________ exemption.

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Question 11

The ________ is a federal agency that is created by the Securities Exchange Act of 1934 and it is empowered to administer federal securities laws.

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Question 12

The Securities Act of 1933 provides a(n)________ exemption that permits local businesses to obtain from local investors capital to be used in the local economy without the need to register with the SEC.

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Question 13

The SEC provides a(n)________ which allows a person who provides information that leads to a successful SEC action to recover 10 percent to 30 percent of the monetary sanctions over $1 million recovered by the SEC.

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Question 14

Interests or instruments that are expressly mentioned in securities acts are ________ securities.

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Question 15

Rule 506-known as the private placement exemption-allows issuers to raise capital from an unlimited number of ________ without having to register the offering with the SEC.

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Question 16

How does Section 16(b)of the Securities Exchange Act of 1934 protect the interests of a corporation? Explain with an example.

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Question 17

The courts apply the Howey test in determining whether an arrangement is a(n)________ and therefore a security.

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Quiz 17: Investor Protection, E-Securities, and Wall Street Reform