Federal and Securities Legislation

Question 1

1933 Act is?

Answer 1

Truth in securities act. regulates new securities and prevents fraud

Question 2

1934 Act contains sections that deal with?

Answer 2

• Regulation of the exchanges

Trading activities like shorts sells, registering OTC broker-dealers

Question 3

Trust Indenture Act?

Answer 3

To protect bondholders

Question 4

The act of 1940?

Answer 4

Defines and regulates companies and mutual funds

Question 5

SPIC

Answer 5

Insurance against broker/ dealers defaulting

Question 6

How much does SPIC cover?

Answer 6

250k cash, 500k securities.

Question 7

MSRB

Answer 7

Regulates Munis

Question 8

What are Blue sky laws?

Answer 8

State security laws

Question 9

If a broker also provides financial advice, he must register as what and where?

Answer 9

As a financial advisor under the 1940 Act

Question 10

1970 Act?

Answer 10

Looks at Brokers/ dealers bankrupcies

Question 11

A penny stock is defined as an unlisted security trading at less than what?

Answer 11

$5

Question 12

Which act exclusively regulates debt securities?

Answer 12

Trust Indenture 1939 Act