Other Federal Regulations Flashcards
“Intrastate offerings” are exempt transactions under the Securities Act of 1933 under the provisions of what rule?
Rule 147 - Intrastate Offerings
For a sale of securities to be exempt under Regulation D under the Securities Act of 1933, there must be no more than ____ accredited investors
35
To claim a private placement exemption the issuer must file a _______ with ______ no later than _____ after the _____ to claim the exemption
Form D; with the SEC; no later than 15 days after the sale date
What is Regulation A?
an “E-Z” registration process under the Securities Act of 1933 that permits a non-exempt issuer to issue up to $50,000,000 worth of securities each year. The intent is to make it simpler for start-up companies to raise capital.
Under the Securities Exchange Act of 1934, the SEC can suspend trading in the securities markets if it gives prior notice to the:
President of the United States
A securities firm that stands ready to buy and sell a security for its own account is a(n):
Market Maker (which is also a principal)
What is a Securities Information Processor (SIP)?
ecurities information processors (SIPs) collect and disseminate prices for non-exempt securities.
What are some examples of SIP’s?
NYSE TRF
NASDAQ TRF
Pink Sheets
If a 13D filing is required, notice must be filed with the Securities and Exchange Commission within:
10 business days
What is Form 13F for?
A report filed with the SEC by investment managers who exercise discretion over the accounts of customers who collectively hold $100,000,000 or more of equity securities
When and how frequently must a Form 13F be filed?
The 13F must be filed within 45 days of the quarter ending where the $100,000,000 dollar limit was reached.
What securities are marginable?
NYSE, AMEX (NYSE-MKT) and NASDAQ listed issues are marginable. Futures are also marginable
Can you purchase options on margin?
No, full payment is required because these have a maximum life of 9 months.
Are mutual funds available for purchase on margin?
No
What Act regulates the registration of new (primary) issues?
The Securities Act of 1933
The Investment Company Act of 1940 requires the registration of:
- Management Companies
- Face amount certificate co’s
- UIT’s
Management companies are prohibited from:
- buying sec. on margin
- selling sec. short
- lending money to shareholder
Under the Investment Company Act of 1940, an affiliated person is prohibited from doing what 3 activities?
- Borrowing money from the fund
- Borrowing securities from the fund
- Selling securities personally to the fund
Under the Investment Company Act of 1940, what percentage of a management company’s Board of Directors MUST be unaffiliated with the investment company?
40%
Under the Investment Company Act of 1940, an investment adviser’s contract is initially set for:
2 years; and is subject to renewal every year thereafter, either by the BOD of the Fund; or a majority vote of the outstanding shares
What price is used for purchase prices and redemption computations of a mutual fund?
That day’s closing price is the basis for fund purchase price and redemption computations
SEC Rule 12b-1 allows open-end investment companies to charge an annual fee for soliciting new investment into the fund against:
total NET assets of the fund
What is the difference between Class A and Class B stock in a pooled investment vehicle?
Class A stock offers breakpoints while Class B stock does not
