Federal Securities Regulation

Question 1

Securities Act of 1933

Answer 1

Registration of Securities (Paper Act)

Question 2

Non Exempt New issues

Answer 2

Can only be sold once the prospectus is effective. Indications of interest but no orders or money can be accepted during the time the issue “in registration” (prior to the effective date)

Question 3

If a mutual fund has been registered for more than 5 years, must a prospectus be delivered during a sale?

Answer 3

Yes

Question 4

Securities Exchange Act of 1934

Answer 4

Registration of persons and exchanges ( People and places) including securities information processors and transfer agents.

Question 5

Margin Requirements

Answer 5

Determined by the board of governors of the federal reserve system ( Reg. T) as provided in the Securities Exchange Act of 1934.

Question 6

Defined investment Discretion

Answer 6

as the ability to select one or more of the following for the client: Asset, Amount, Action.