Snapshots Chapter 2: Securities Flashcards
Give some examples of corporate issues.
Notes, bonds, debentures, or other evidence of indebtedness are examples of Corporate Issues.
What specific securities are examples of government issues?
Obligations of the U.S. Government and those of foreign governments are examples of Government Issues.
Why are Network Marketing arrangements defined as securities?
To protect investors from past abuses in the selling of these interests.
What is included in a Registration Statement?
The amount of securities being offered, other states in which a registration statement has been or will be filed, and any adverse rulings entered in connection with the offering.
The Uniform Securities Act (USA) provides for the registration of Securities by what methods?
The Act provides for the registration of securities by filing, coordination and qualification.
The notification by filing must contain consent to service of process, and other papers containing what other information?
A statement of eligibility for the filing and the name, address, and type of organization of the issuer are two examples of required information.
To register by coordination, the issuer must file the consent to service of process, the registration statement, and what additional information to the State?
Three copies of the current prospectus on file with the SEC and any underwriter agreements are two examples of additional required information.
To register by qualification, what information is required for the filing?
General information about the issuer and information on all officers and directors of the issuer.
What are the primary reasons the Administrator might use its authority to issue a stop order denying the effectiveness of a registration statement, or may suspend or revoke the registration of an issue?
The registration statement is incomplete or contains false or misleading information, or a provision of the USA has been willfully violated.
What types of securities are defined as Exempt Securities?
Issues of banks, savings and loans, trusts companies, and federal credit unions, and building and loan association issues.
How does the Uniform Securities Act (USA) define Federal Covered Securities?
Securities listed on the NYSE, NASDAQ or any other national exchange determined by the SEC as having similar listing standards.
Under what conditions may an Administrator deny or revoke the exemption for any security or transaction?
If the Administrator has given prior notice to all interested parties, provides an opportunity for a hearing, and provides written findings of fact and laws.
