When a securities professional buys stock for her own account, then urges investors to buy the same stock so that the price will rise, and benefit her, has engaged in:

Select one:

a.

kiting

b.

churning

c.

dealing

d.

schmoozing

e.

none of the other choices

Question 43

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The Securities Act of 1934 requires publicly held companies to file financial reports with the SEC and post them on the companies' websites.

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True

False

Question 44

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Specialist firms are regulated by the SEC, to prevent fraud or the exploitation of the unique position that specialists have in market trades.

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True

False

Question 45

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Under the Securities Litigation Reform Act of 1995, companies face reduced liability for inaccurate statements predicting future corporate performance.

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True

False

Question 46

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The Securities Litigation Uniform Standards Act of 1998 requires all states to amend their securities laws to conform to federal standards.

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True

False

Question 47

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Investment advisers usually charge an annual advisory fee equal to 0.5 percent of the net asset value of the fund they manage.

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True

False

Question 48

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"Material information" in an SEC disclosure is defined to mean the management structure of an issuer of securities.

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True

False

Question 49

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To avoid charges of insider trading, executives may use "program trading" on a set time schedule.

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True

False

Question 50

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The SEC requires that investment companies pay dividends to investors that equal at least 50% of taxable ordinary income of the company.

Select one:

True

False