11. What are issuers not permitted to do during the waiting period of the registration filing process?

Multiple Choice

Publish a tombstone advertisement

Distribute a red-herring prospectus

Sell their securities

Make oral offers to sell their securities

12. Under 10(b) of the Securities Exchange Act of 1934, which of the following are considered insiders?

Multiple Choice

Majority shareholders, employees, and corporate directors

Majority shareholders

Corporate directors

Employees

13. If Jason (an employee) gives material inside information to Lisa, Jason would be a _____ and Lisa would a _____.

Multiple Choice

tipper; tippee

donee; donor

tippee; tipper

donor; donee

14. Under the Securities Exchange Act of 1934, who can bring a civil action against a violator?

Multiple Choice

State governments

Private parties and the SEC

The SEC

Private parties

15. Which law regulates the offering and sale of purely intrastate securities?

Multiple Choice

Securities Exchange Act of 1934

Blue law

Blue-sky law

Securities Act of 1933

16. Which of the following is not considered a security?

Multiple Choice

Investment contract

Stocks

Debentures

Life insurance

17. Who defined security as an investment in a common enterprise with the reasonable expectation of profit gained primarily or substantially from the efforts of others?

Multiple Choice

The United States Supreme Court

The SEC

The president

Congress

18. Which law did Congress pass specifically to prevent the exploitation of small investors?

Multiple Choice

The Private Securities Litigation Reform Act (PSLRA) of 1995

The Securities and Exchange Act of 1934

The Securities Act of 1933

The Investment Company Act of 1940

19. The Investment Company Act of 1940 defines an investment company as any entity that is engaged in investing and has more than what percentage of the company assets as investment securities?

Multiple Choice

75%

40%

25%

10%

20. To encourage greater coordination between federal and state securities laws, most states have adopted _____.

Multiple Choice

The Uniform Commercial Code

Blue sky laws

The Uniform Securities Act

The Investment Company Act of 1940