16%of Test Knowledge Of Capital Markets Flashcards
What is not an acceptable choice to function as a depository and intermediary for transactions between buyers and sellers of securities?
Credit unions
During the cooling off period of a new registration filed with the SEC
A red herring may be given to prospective investors
when choosing to issue additional bonds to the general public in order to raise more capital, a corporate issuer is engaging in
A primary offering
Which of the following would be the interest rate charged for overnight uncollateralized loans negotiated between two money center banks
Federal funds rate
Security regulations that are called blue sky laws refer to those at
The state level
Which of the following would be considered an isolated non-issuer transaction exempt from state registration under the uniform securities act
An individual buying stock from another individual without using the services of a registered representative
When the Federal open market committee (FOMC) directs that treasury securities be sold in the open market this
Decreases the money supply
Regarding registration for the sale of securities, those are registered under the investment company act of 1940 such as mutual funds would be considered
Federal covered securities and not required to register at the state level
What is not exempt from the securities act of 1933?
Limited partnerships
What is exempt from the securities act of 1933?
US treasury securities
Fixed annuity contracts
Debt securities issued by religious organizations
Carrying firms may not
Mix customer funds and securities with their own
The economy is showing that employment is low, there is no concern would be manned and loans for expansion and retooling our way down, showing a lack of business activity. Yep prices for consumer goods are still rising. Economists would call this a period of
Stagflation
In underwriting group is currently assisting an issue were with the preparation and filing of the registration statement for a new issue who is responsible for the accuracy of the information within the registration statement?
The issuing corporation
What is not exempt from the registration requirement of the securities act of 1933
Access equals delivery rule
What is exempt from the registration requirement of the securities act of 1933
Regulation A
Regulation D
Rule 147
Underwriters who are assisting an issue were in bringing securities to the investing public can do which of the following between the time registration was filed with the SEC and the effective date?
Distribute a preliminary prospectus to the investing public
The prime rate is set by who?
Individual banks
Regarding the purchase of new equity issues (IPOs) Restricted persons may
Not purchase shares of a new issue
A weak US dollar leads to more
US exports and a balance of payments surplus
It is expected that financial markets
Have transparent pricing for assets
US consumers are increasing their imports of foreign-made goods. On this data alone one might expect gross domestic product (GDP) to
Decrease
Municipalities the federal government and corporations can raise funds in the capital markets. True or false?
True
This offering is most likely exempt from the registration requirement of the securities act of 1933
Private or non-public securities offerings
If the large money center commercial banks begin to lower their prime rates which of the following occurs
Smaller banks will lower lending rates for credit where the corporate customers as well
Economists call mild short term contractions
Recessions
And official statement is a disclosure document that would be used in connection with an offering of which of the following securities
Municipal bonds
The statement these securities I have not been approved or disapproved nor have any representations been made about the accuracy or the adequacy of the information is
Mandated to be in the final prospectus by the SEC
Access equals delivery can only mean
Physical delivery of the prospectus and not viewing one on a website
When the supply for money exceeds the demand
Interest rates fall, making consumer borrowing easier
A preliminary prospectus or red herring
Maybe used to gather indications of interest
When the demand for money exceeds the supply
Interest rates rise, making consumer borrowing more difficult
Shelf offerings are covered under
The securities act of 1933
A toy company is experiencing sudden strong demand for a game. Purchasing this company stock may prove profitable in the short run. This company‘s stock might best be termed as a
Special situation
Mild inflation can encourage what with the economy?
Growth and stimulate the economy
The federal laws requiring companies offering public equity or debt securities to provide a prospectus to investors is known as
The securities act of 1933
The FRB or Federal reserve board does not
Enact fiscal policy
The president does this
To prevent inflation by tightening the available credit, the FRB would NOT do what?
Lower the prime rate
Which of the following benchmark interest rates is considered a barometer of the direction of short term interest rates
The federal funds rate
True or false, issuer transactions occur in the primary market, and securities are offered at a public offering price
TRUE
