6 Sec 1933 & 34

Question 1

Securities Act 1933

(3)

Answer 1

1. truth in securities
2. prospectus before $
3. reg cool off 20 days no advertising

Question 2

Exempt Issures from

Sec Act 1933

Answer 2

govt

bank

chartitable org

sec maturing in

Question 3

Sec Act 1933

Exempt Transactions

Reg A

Rule 147

Reg D

Rule 144

Which investors

Answer 3

small offering < = 5MM

Jobs Act 2012 - Reg A+ - inc to 50 MM

Question 4

Sec Act 1933

Exempt Transactions

Reg A

Rule 147

Reg D

Rule 144

Which investors

Answer 4

sell to only state residents

80% of assets there

buters can’t sell to non-resident for 9 months

Question 5

Sec Act 1933

Exempt Transactions

Reg A

Rule 147

Reg D

Rule 144

Which investors

Answer 5

private placement

35 or less non-accredited investors

hold stock 1 year before selling

Question 6

Sec Act 1933

Exempt Transactions

Reg A

Rule 147

Reg D

Which investors

Answer 6

sophisticated

Question 15

Sec Act 1933

Exempt Transactions

Reg A

Rule 147

Reg D

Rule 144

Which investors

Answer 15

re-sale restricted stock held by co, affiliates or ees

Question 16

Securities Exchange 1934

(3)

Answer 16

1. broader in scope
2. creates SEC - Securities Exchange Commission
3. register & regulate
   
   • brokerage firms
   • transfer agents
   • clearing agencies
   • SROs (FINRA)
   • exchanges

Question 18

1934

3 items it regulates

Answer 18

AIM

1. annual Reporting
2. insider trading
3. margins - oversight by Fed Reserve Board (FRB)

Question 20

Trust Indenture 1939

what products must comply

Answer 20

public bonds

trust indentures

Question 22

ERISA

inforced by

Answer 22

EE Ret Income Security Act

DOL

Question 24

Defined Benefit Plans

Answer 24

promises to pay predetermined $ to retirees

Question 26

EE invested in Co. stock

plan may not aquire ER sec or real estate that exceeds

what value of plan assets?

Answer 26

10%

Question 28

FINRA bylaws

1. rules of fair practice
2. uniform practice code
3. code of procedure
4. code of arbitration

Answer 28

1. how to deal w/ customers
2. settlement dates & delivery
3. conduct violations
4. disputes among members

Question 30

Rules for firm to join FINRA

(4)

Answer 30

1. meet capital requirements
2. 2 principals supervising
3. business plan
4. attend pre-membership interview