Chapter 1

Question 1

The securities act of 1933 regulates _______________

Answer 1

new issues

Question 2

What is the primary purpose of the securities act of 1933?

Answer 2

provide investors with full and fair disclosure

Question 3

The securities exchange act of 1934 regulates the ______________

Answer 3

Secondary Market

Question 4

What U.S. Government Agency, created by the ‘34 Act, enforces securities laws?

Answer 4

SEC

Question 5

Name some Self-Regulatory Organizations (SRO’s)

Answer 5

FINRA, MSRB, CBOE

Question 6

What is the role of an SRO?

Answer 6

Maintain fair and orderly securities markets and establish rules and regulations for protecting investors

Question 7

The_______________________________________ is the SRO for the OTC market.

Answer 7

The Financial Industry Regulatory Authority (FINRA) is the SRO for the OTC market.

Question 8

What is FINRA’s primary objective?

Answer 8

To adopt, administer, and enforce rules in the securities industry.

Question 9

Which department of a broker-dealer handles the underwriting and issuance of securities for clients?

Answer 9

Investment banking