Questions To Study Flashcards
What federal law was created to prevent fraud in the sale of new issues?
The Securities Act of 1933 is to prevent fraud in the sale of new issues of securities (primary distributions) by requiring that investors be provided with enough relevant information about the offering to make an informed decision
What federal law requires broker-dealers to register with the SEC
The Securities Exchange Act of 1934 established the SEC which requires the registration of broker-dealers, and governs the secondary market for securities in the US>
What type of securities are NOT required to be registered with the state Administrator?
Exempt securities
What does NASAA do?
1) Writing and updating the USA
*SEC enforces federal securities law
**FINRA is a self-regulatory org (SRO) that regulates broekr-dealers.
What is the purpose of the Securities Exchange Act of 1934?
This act established the SEC and requires the registration of certain financial professionals and governs the secondary market
What does the Investment Adviser’s Act do?
Requires investment advisers to register with the SEC
What does the Securities Act of 1933 do?
Governs the sales of new securities (IPOS)
What does the USA do?
It is a model law that’s used to create state securities legislation
What does the NSMIA do?
The National Securities Markets Improvement Act of 1996 was created to eliminate the duplication of state and federal regs.
Which exemption from the registration requirements of the Securities Act of 1933 permits the sale of up to $20 million of securities in a 12-month period without registration with the SEC?
Regulation A Tier 1- an issuer is permitted to sell up to $20 millions of any securities in a 12-month period without registering securities with the SEC.
What is Reg D?
An exemption from the securities Act of 1933 for private placements
What is Rule 147?
The intrastate exemption; if the security is only offered in the state. Must register with the state using qualification.
Notice filings are given to the state Administrator(s) by issuers of federal covered securities
When does a security registered with the state Administrator under USA expire?
One year from the effective date of the security’s registration
USA Exempt Securities include:
- Canada securities
- Savings and loans associations
- Railroad company certs
What is registration by qualification?
When an issuer must satisfy requirements that are set by the Administrator. Qualification doesn’t require registration with the SEC.