Chapter 1 - Overview Of Financial Markets And Regulation Flashcards

1
Q

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

A

Investment Banking

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2
Q

The _________ is the SRO for the OTC market.

A

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

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3
Q

What is the role of an SRO?

A

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

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4
Q

The Securities Exchange Act of 1934 regulates the _______ ______.

A

The Securities Exchange Act of 1934 regulates the Secondary Market.

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5
Q

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

A

The Securities and Exchange Commission (SEC)

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6
Q

What is FINRA’s primary objective?

A

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

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7
Q

The Securities Act of 1933 regulates _____.

A

The Securities Act of 1933 regulates new issues.

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8
Q

What is the primary purpose of the Securities Act of 1933?

A

Provide investors with full and fair disclosure regarding new issues (prospectus)

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9
Q

Name some Self-Regulatory Organizations (SROs).

A

FINRA, MSRB, CBOE, and other exchanges.

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