Chapter 7: State Securities Laws Corporate Governance and Online Securities Fraud

Question 1

Blue sky laws are:

Answer 1

state laws regulating intrastate sales of securities

Question 2

In 2002, the National Conference of Commissioners on Uniform State Laws substantially revised the ——– to coordinate state and federal securities regulation and enforcement efforts.

Answer 2

Uniform Security Act

Question 3

Effective corporate governance is essential in large corporations because corporate ownership (by shareholders) is separated from corporate control (by officers and managers).

Answer 3

True

Question 4

In order to improve corporate governance, most large corporations have eliminated the use of outside directors.

Answer 4

False

Question 5

The ——- Committee of the board of directors is one of the most important.

Answer 5

Compensation

Question 6

Sections 302 and 404 of the Sarbanes-Oxley Act require high-level managers and many senior officers to establish and maintain an effective system of internal controls.

Answer 6

True