Summary: Series 7 Top-Off Exam Quiz Lesson 6 Securities Act of 1933<br> This is Series 7 Top-Off Exam Quiz Lesson 6 Securities Act of 1933<br> <br> 1. Which of the following is true about the Securities Exchange Act of 1934?<br> (Select all that apply.)<br> A. It applies to exempt securities.<br> B. It determines what fair trading practices are.<br> C. It regulates the secondary trading of securities.<br> D. It was established by the Securities and Exchange Commission.<br> <br> 2. Which of the following is contained in a 10-K? (Select all that apply.)<br> A. balance sheet<br> B. cash flow statement<br> C. compensation of officers<br> D. income statement<br> <br> 3. The 10-Q is an audited financial report submitted quarterly to the Securities and Exchange Commission.<br> A. True<br> B. False<br> <br> 4. A ___ is filed if the company changes its name or there’s a 5% or greater change in the number of shares outstanding.<br> A. 10-C<br> B. 13-G<br> C. 15-B<br> D. 8-K<br> <br> 5. Which of the following is required from the broker-dealers by the Securities Exchange Act of 1934?<br> (Select all that apply.)<br> A. buy back stocks for customers that reneged on their transactions<br> B. electronically deliver clients’ confirmation and statements<br> C. maintain a minimum net capital<br> D. send customers a copy of their income statement<br> <br> 6. Under ___, margins are regulated from brokers to their customers.<br> A. Regulation D<br> B. Regulation M<br> C. Regulation T<br> D. Regulation U<br> <br> 7. Broker-dealers are allowed to disclose to customers the routing of the customers’ orders.<br> A. True<br> B. False<br> <br> 8. It is a totally anonymous matching of buy and sell orders.<br> A. alternative trading system<br> B. electronic exchange<br> C. electronics communication network<br> D. physical exchange<br> <br> 9. Which of the following are/were physical exchanges?<br> (Select all that apply.)<br> A. Cincinnati Stock Exchange<br> B. New York Stock Exchange (NYSE)<br> C. Pacific Stock Exchange<br> D. Philadelphia Stock Exchange<br> <br> 10. Which of the following is true about penny stocks?<br> (Select all that apply.)<br> A. They are sold on the over-the-counter bulletin board.<br> B. They are unsolicited orders.<br> C. They are traded on the NASDAQ and other listed exchanges.<br> D. They sell at less than $5.<br> <br> 11. The broker is not required to assess a penny stock buyer’s financial situation if the buyer is a/an ___.<br> (Select all that apply.)<br> A. accredited investor<br> B. client whose order is unsolicited<br> C. insider<br> D. interstate citizen<br> <br> 12. It is trading on nonpublic material information on the company.<br> A. front running<br> B. insider trading<br> C. pegging<br> D. wash trade<br> <br> 13. This is the catchall rule that prohibits anything fraud even if it is not specifically prohibited in the Securities Exchange Act of 1934.<br> A. Rule 10b-5<br> B. Rule 127-c<br> C. Rule 144A<br> D. Rule 145<br> <br> 14. For unlawful practices under the Securities Exchange Act of 1934, suits can be brought within ___ of discovery.<br> A. six months<br> B. one year<br> C. two years<br> D. three years<br> <br> 15. If a control person owns a position of a stock and he wants to lock in his profit or loss, he can ___.<br> A. dribble out<br> B. peg the stock<br> C. short against the box<br> D. short sell the stock<br> <br> 16. Anybody that has nonpublic material information on the company is considered an insider.<br> <br> <br> A. True<br> B. False<br> <br> 17. In the United Sates, they are exempted from the rules that prohibit insider trading.<br> (Select all that apply.)<br> A. congressmen<br> B.
