8. Placing simultaneous offsetting trades to create an appearance of market interest in a security -- a. Is manipulation prohibited by Section 9 of the Securities Exchange Act b. Is the principal activity of market makers C. Is legal, although unethical d. Is called "laddering" 9. A regulation that provides a clear delineation of conduct that will be deemed legal under a general, vague or ambiguous statutory provision -- a. Is a binding only if approved by Congress b. May not be reliable, depending on a reviewing Court C. Is a "safe harbor" regulation d. Will preclude a sentence of imprisonment, if relied upon in good faith 12. Whether a company is required to publicly disclose an internal business development depends on -- a. Whether an applicable disclosure law or rule is triggered b. Whether the development has been disclosed to the company's directors C. Whether the company is a new issuer or a well known seasoned issuer d. Whether the company ethics code requires disclosure 15. A retail investor can efficiently obtain the advantages of professional investment management and portfolio diversification by - a. Expanding his/her use of margin credit b. Investing in derivatives C. Investing in shares of a mutual fund d. Investing in a cybersecurity 16. A "private cause of action" refers to -- a. The right of one private party to bring a lawsuit against another b. Any securities lawsuit that does not qualify as a "class action" C. A confidential SEC enforcement proceeding d. A proceeding under Section 17 of the '33 Act 17. The "misappropriation" theory refers to - a. Inclusion of unattributed quotations in a securities filing b. Breach of a duty owed to the source of confidential information C. Theft of a corporate opportunity d. The duty of an insider to "disclose or refrain from trading" 18. To establish a violation of Rule 10b-5, the plaintiff must always prove -- a. That the defendant purchased securities b. An element of deception C. That defendant knew his conduct violated Rule 10b-5 d. That the defendant sold securities 19. Holding individual corporate officers and directors to account for unlawful conduct -- a. Encourages corporate misconduct b. Is unnecessary, as long as the corporation is punished C. is official U.S. Department of Justice policy d. Depends on the personal preference of the prosecutor assigned to the case 20. To qualify a securities lawsuit as a "class action," plaintiff's counsel must -- a. Prove that the plaintiffs all belong to the same socio-economic class b. Secure prior written consents from all members of the class c. Show that common questions of law and fact predominate d. All of the above 21. "Forward-looking Statements" in a securities filing -- a. May never be the subject of a disclaimer b. May be protected by a "safe harbor" C. Must be immediately corrected by a new disclosure if they are later determined to be incorrect d. Are prohibited by Rule 10b-5
