QUESTION 6

1. Continuous periodic disclosures by publicly held corporations to enable the SEC to regulate subsequent trading is required under the Securities Exchange Act of 1934.

   True

   False

10 points

QUESTION 7

1. Section 12 companies (over $10 million assets or 500 or more shareholders) are required to file reports with the SEC annually and quarterly and even monthly if specified events occur.

   True

   False

10 points

QUESTION 8

1. SEC Rule 10b(5) prohibits fraud in connection with the purchase or sale of any security. Private parties can sue under this rule for fraud.

   True

   False

10 points

QUESTION 9

1. Only a tipper will be liable for insider trading.

   True

   False

10 points

QUESTION 10

1. The compensation committee oversees the corporations accounting and financial reporting processes, including both internal and outside auditors.

   True

   False