Question 1

Violation of Section 16,a finding of short-swing liability,does not require evidence of the use of insider information and is deemed a strict liability provision.

Accepted Answer

A) True 
 B)False

Question 2

of the '34 Act is aggressively used by the SEC in terms of insider trading enforcement.

Accepted Answer

A) True 
 B)False

Question 3

One form of a private placement exemption involves:

Accepted Answer

A)   sales of securities in limited dollar amounts to nonaccredited investors.
B)   sales of securities only to employees, officers and board members of the issuing corporation.
C)   sales of securities to accredited investors.
D)   sales of securities to other corporations with no sales to individuals permitted

Question 4

Most common stock enjoys voting rights; however,common stock may be sold without voting rights.

Accepted Answer

A) True 
 B)False

Question 5

The promissory note securing a home mortgage is a security instrument.

Accepted Answer

A) True 
 B)False

Question 6

The purchase and sale of issued securities between investors is called the:

Accepted Answer

A)   primary market.
B)   secondary market.
C)   preferred market.
D)   common market

Question 7

Rule 16 of the '34 Act defines an insider as an officer,director or shareholder who owns ________ or more of the company's total stock.

Accepted Answer

A)   5%
B)   10%
C)   15%
D)   20%

Question 8

Under the emergency escrow provisions created under the Sarbanes-Oxley Act:

Accepted Answer

A)   the SEC may require corporate payouts into a government controlled emergency escrow fund after the SEC investigation has uncovered wrongdoing by the corporation.
B)   the SEC may require corporate payouts into a government controlled emergency escrow fund during their investigation and before the SEC has uncovered wrongdoing by the corporation.
C)   the PCAOB may require corporate payouts into a government controlled emergency escrow fund after the PCAOB investigation has uncovered wrongdoing by the corporation.
D)   the PCAOB may require corporate payouts into a government controlled emergency escrow fund during their investigation and before the PCAOB has uncovered wrongdoing by the corporation

Question 9

The corporate counsel's opinion verifying the business ventures adherence to corporate formalities and compliance and opinion of the corporation's accounting firm is contained in the:

Accepted Answer

A)   prospectus.
B)   letters of intent.
C)   supplemental information.
D)   comfort letters

Question 10

Eve is a promoter and has approached Adam with an investment opportunity.Eve anticipates a generous profit and informs Adam that he too can realize a generous profit also.This opportunity is not being offered to others.Assuming all other requirements to classify this as a security are in evidence,the commonality of this transaction would be described as a:

Accepted Answer

A)   horizontal commonality.
B)   parallel commonality.
C)   vertical commonality.
D)   common commonality

Question 11

Preferred stock always has voting rights.

Accepted Answer

A) True 
 B)False

Question 12

Debentures are unsecured equity instruments that are issued by a corporation.

Accepted Answer

A) True 
 B)False

Question 13

The foundation and underlying principle of all securities regulation is disclosure.

Accepted Answer

A) True 
 B)False

Question 14

The original Howey test required that the investor have no involvement with the generation of profits,however,modern courts have permitted a limited passive involvement on the part of the investor.

Accepted Answer

A) True 
 B)False

Question 15

In what two ways do federal securities statutes define a security?

Accepted Answer

Federal securities laws define securitie...

Question 16

Micro bonds appeal to small business ventures who wish to take advantage of bond financing in the ________ range.

Accepted Answer

A)   $50,000 to $100,000
B)   $100,000 to $500,000
C)   $500,000 to $1,000,000
D)   $1,000,000 to $5,000,000

Question 17

If a company files bankruptcy,preferred stock holders have priority over common stock holders and will be paid from the bankruptcy estate first if payments are to be made.

Accepted Answer

A) True 
 B)False

Question 18

The "safe harbor" exemption from SEC regulations involves:

Accepted Answer

A)   nonpublic offers to a limited number of sophisticated investors who already have business relationships with the issuer.
B)   nonpublic offers to a limited number of sophisticated investors who privately negotiate their securities purchases.
C)   offerings with specified dollar limitations and/or limitations on the number of accredited investors.
D)   offerings with specified dollar limitations and/or limitations on the number of nonaccredited investors

Question 19

Bonds are debt instruments secured by company assets.

Accepted Answer

A) True 
 B)False

Question 20

Under Sarbanes-Oxley,requiring the payback of corporate bonuses that were awarded and later found to be based on false disclosures is called a ________ provision.

Accepted Answer

The answer of Under Sarbanes-Oxley,requiring the payback of corporate bonuses...

Exam 16: Regulation of Securities, corporate Governance, and Financial Markets

of the '34 Act is aggressively used by the SEC in terms of insider trading enforcement.

Correct Answer
verified

Micro bonds appeal to small business ventures who wish to take advantage of bond financing in the ________ range.

Correct Answer
verified

The corporate counsel's opinion verifying the business ventures adherence to corporate formalities and compliance and opinion of the corporation's accounting firm is contained in the:

Correct Answer
verified

In what two ways do federal securities statutes define a security?

Correct Answer
verified
Federal securities laws define securitie...
View Answer

The purchase and sale of issued securities between investors is called the:

Correct Answer
verified

Debentures are unsecured equity instruments that are issued by a corporation.

Correct Answer
verified

One form of a private placement exemption involves:

Correct Answer
verified

Most common stock enjoys voting rights; however,common stock may be sold without voting rights.

Correct Answer
verified

Rule 16 of the '34 Act defines an insider as an officer,director or shareholder who owns ________ or more of the company's total stock.

Correct Answer
verified

Preferred stock always has voting rights.

Correct Answer
verified

Bonds are debt instruments secured by company assets.

Correct Answer
verified

The "safe harbor" exemption from SEC regulations involves:

Correct Answer
verified

Violation of Section 16,a finding of short-swing liability,does not require evidence of the use of insider information and is deemed a strict liability provision.

Correct Answer
verified

Correct Answer
verified

If a company files bankruptcy,preferred stock holders have priority over common stock holders and will be paid from the bankruptcy estate first if payments are to be made.

Correct Answer
verified

The promissory note securing a home mortgage is a security instrument.

Correct Answer
verified

Under Sarbanes-Oxley,requiring the payback of corporate bonuses that were awarded and later found to be based on false disclosures is called a ________ provision.

Correct Answer
verified

The foundation and underlying principle of all securities regulation is disclosure.

Correct Answer
verified

Under the emergency escrow provisions created under the Sarbanes-Oxley Act:

Correct Answer
verified

The original Howey test required that the investor have no involvement with the generation of profits,however,modern courts have permitted a limited passive involvement on the part of the investor.

Correct Answer
verified

Exam 16: Regulation of Securities, corporate Governance, and Financial Markets

of the '34 Act is aggressively used by the SEC in terms of insider trading enforcement.

Correct AnswerverifiedShow Answer

Micro bonds appeal to small business ventures who wish to take advantage of bond financing in the ________ range.

Correct AnswerverifiedShow Answer

The corporate counsel's opinion verifying the business ventures adherence to corporate formalities and compliance and opinion of the corporation's accounting firm is contained in the:

Correct AnswerverifiedShow Answer

In what two ways do federal securities statutes define a security?

Correct AnswerverifiedFederal securities laws define securitie...View AnswerShow Answer

The purchase and sale of issued securities between investors is called the:

Correct AnswerverifiedShow Answer

Debentures are unsecured equity instruments that are issued by a corporation.

Correct AnswerverifiedShow Answer

One form of a private placement exemption involves:

Correct AnswerverifiedShow Answer

Most common stock enjoys voting rights; however,common stock may be sold without voting rights.

Correct AnswerverifiedShow Answer

Rule 16 of the '34 Act defines an insider as an officer,director or shareholder who owns ________ or more of the company's total stock.

Correct AnswerverifiedShow Answer

Preferred stock always has voting rights.

Correct AnswerverifiedShow Answer

Bonds are debt instruments secured by company assets.

Correct AnswerverifiedShow Answer

The "safe harbor" exemption from SEC regulations involves:

Correct AnswerverifiedShow Answer

Violation of Section 16,a finding of short-swing liability,does not require evidence of the use of insider information and is deemed a strict liability provision.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If a company files bankruptcy,preferred stock holders have priority over common stock holders and will be paid from the bankruptcy estate first if payments are to be made.

Correct AnswerverifiedShow Answer

The promissory note securing a home mortgage is a security instrument.

Correct AnswerverifiedShow Answer

Under Sarbanes-Oxley,requiring the payback of corporate bonuses that were awarded and later found to be based on false disclosures is called a ________ provision.

Correct AnswerverifiedShow Answer

The foundation and underlying principle of all securities regulation is disclosure.

Correct AnswerverifiedShow Answer

Under the emergency escrow provisions created under the Sarbanes-Oxley Act:

Correct AnswerverifiedShow Answer

The original Howey test required that the investor have no involvement with the generation of profits,however,modern courts have permitted a limited passive involvement on the part of the investor.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Federal securities laws define securitie...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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