Securities Regulations Flashcards

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1
Q

Securities Act 1933

A

Regulates new securities (Primary Market) (IPOs)

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2
Q

Securities Act 1934

A

Regulates Secondary Market & trading of securities

Created the SEC

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3
Q

Investment Company Act 1940

A

Authorized SEC to regulate investment companies

Open, Closed, and UITs

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4
Q

SIPC (1970)

A

Protects investors if broker firm fails

Covers $500k, including $250k of cash

Don’t have to be US citizen

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5
Q

Bankers Acceptance

A

Facilitates imports/exports

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6
Q

Commercial Paper

A

Short term loans btw corporations

Maturities are 270 days or less, denominations of $100k

270 because it doesn’t have to be registered w/ SEC

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7
Q

Investment Policy Statement Establishes:

A

Client Objectives
Limitations on investment manager
Used to measure investment manager’s performance
Does NOT include investment selection

Covers Risk, Return requirements, Time, Taxes, Liquidity, Legal

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8
Q

Dow Jones

A

Simple Price Weighted Avg.

Does NOT incorporate market capitalization

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9
Q

S&P 500

A

Value Weighted Index

Incorporates market capitalization of individual stocks into the average

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