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SIE Exam 2024 > Chapter 1: Regulation > Flashcards

Chapter 1: Regulation Flashcards

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SIE Exam flashcards
1
Q

What is the SEC’s primary purpose?

A

Ensure adherence to rules and regulations the commission makes and enforces

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2
Q

MSRB

A

Municipal Securities Rulemaking Board

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3
Q

FINRA oversees…

A

Brokerage firms and their associated persons

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4
Q

MSRB oversees…

A

Municipal securities market, including dealers, municipal advisers, and issuers

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5
Q

When was the Federal Reserve founded?

A

12/23/1913

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6
Q

The Federal Reserve Act was passed to:

A

Stabilize prices, maximize employment, and moderate long-term interest rates

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7
Q

Four primary components of the Federal Reserve

A

-Board of Governors
-Federal Open Market Committee
-12 Regional Federal Reserve Banks
-Member banks throughout US

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8
Q

FDIC

A

Federal Deposit Insurance Corporation

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9
Q

The FDIC was created to…

A

Foster stability within the financial system while concurrently upholding public confidence and efficacy

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10
Q

The FDIC also…

A

-Provides deposit insurance
-Oversees financial institutions to ensure safety and soundness
-Facilitates the resolution of significant financial organizations
-Administers receiverships

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11
Q

The FDIC extends its protections to…

A

Checking and saving accounts, money market accounts, certificates of deposit, IRA’s, revocable/irrevocable trust accounts, and employee benefit plans

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12
Q

What are blue-sky laws?

A

Anti-fraud regulations at the state level

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13
Q

Blue-sky laws vary from state to state but…

A

Require sellers of new issues to provide in-depth financial details of the entities involved in every deal

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14
Q

Blue-sky laws are what require producers to…

A

Get their licenses

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15
Q

NASAA

A

North American Securities Administrators Association

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16
Q

NASAA is a group of securities regulators dedicated to…

A

Safeguarding investors against fraudulent activities

17
Q

The individuals of NASAA are responsible for…

A

Licensing securities firms, investment professionals, and other tasks

18
Q

Securities Act of 1933: Goal 1

A

Establish Laws against misrepresentation and fraudulent activities in the securities market

19
Q

Securities Act of 1933: Goal 2

A

Ensure transparency in financial statements to help investors make informed decisions

20
Q

What is the primary objective of the Securities Exchange Act of 1934?

A

Regulate securities trading in the secondary market after their issuance

21
Q

The secondary market is where…

A

Trading occurs after a company issues assets

22
Q

Investment Advisors Act of 1940

A

Federal statute established to oversee and govern the operations of investment advisors as defined by law

23
Q

Securities Investors Protection Act (SIPA)

A

Renew faith in the capital markets among investors and enhance financial obligation prerequisites for registered brokers and dealers

24
Q

Securities Investor Protection Corporation (SIPC)

A

Nonprofit organization created by Congress to safeguard the customers of brokerage firms that become insolvent

25
Q

Penny Stock Reform Act of 1990

A

Seeks to prevent fraud in non-exchange listed stocks, known as penny stocks

26
Q

Penny Stock

A

Stock that trades below $5 per share

27
Q

Insider Trading and Securities Fraud Enforcement Act of 1988 (ITSFEA)

A

Aims to increase the liability penalties in all involved parties f insider trading

28
Q

Investment Company Act of 1940

A

Governs the formation and operations of investment companies and sets industry standards

29
Q

Telephone Consumer Protection Act of 1991

A

Limits the use of telemarketing, including artificial messages, text messages, fax machines, prerecorded messages, and autodialing systems

30
Q

Financial Industry Regulatory Authority (FINRA)

A

Nongovernmental and independent organization that establishes and enforces rules governing broker-dealers and brokers in the US

31
Q

Uniform Practice Code (UPC)

A

Set of rules that govern the activities of FINRA member firms and ensures consistent practices in the securities industry

32
Q

Code of Procedure (COP)

A

FINRA’s procedural rules, oversee disciplinary proceedings against FINRA member firms

33
Q

Chicago Board Options Exchange (CBOE)

A

Facilitates trading activities mainly in options and future products

SIE Exam 2024 (20 decks)

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