1. The insider Trading Sanctions Act:

a.was passed by Congress to give the S.E.C. a clear statutory basis for prsecuting insider trading

b.codified theChiarelladecision by the Supreme Court

c.does not permit the imposition of treble damages

d.has not been used by the S.E.C. which considered it to be ineffective to tackle the problem of major deals by insiders affecting the securities markets

2. When the SEC reviews a prospectus for a new stock offering it may not:

a.Rule on the merits of the offering

b.Issue a deficiency letter ordering the issuer to amend the prospectus

c.Issue a stop order preventing the issue from going forward

d.None of the above may be done; the SEC only records the prospectus for public filing

e.All of the above may be done

3. The Securities and Exchange Commission has the power to:

a.Issue a stop order to prohibit the sale of securities

b.Rule on the merits or financial soundness of a security offering

c.Determine the number of shares of stock that a corporation may sell in any given offer

d.A and B

e.A, B and C