3. Federal Securities Acts

Question 1

In order to clarify items in the balance sheet or income statement a corporation include them as:

Answer 1

Footnotes

Question 2

According to Sarbanes-Oxley public corporations financial statements must be certified by the corporations:

Answer 2

CEO and CFO

Question 3

According to the securities exchange act of 1934 what is required to be included on the confirmation statement for a Bond trade?

Answer 3

1. The bonds yield at the time of trade
2. YTM
3. Purchase price
4. If bond is unrated.

Question 4

T or F: Under NASAA rules if a customer wishes to trade a margin account prior to returning the signed margin agreement such an action is permitted only if the customer return to sign margin agreement promptly

Answer 4

True

Question 5

T or F: FINRA requires that the margin agreement be signed and returned prior to settlement of the first transaction in the account, unlike NASAA

Answer 5

True

Question 6

How do you NASAA rules and FINRA rules differ regarding the margin agreement signature and the settlement of the first transaction in the account?

Answer 6

NASAA: permitted if the customer returns assign margin agreement promptly after the first trade.
FINRA: requires the margin agreement be signed prior to the settlement of the first transaction in the account.

Question 7

Criminal violations of the investment advisors act of 1940 are punishable by:

Answer 7

$10,000 and up to five years in jail.

Question 8

Under the investment advisors act of 1940 the SEC policy regarding emails maintains that:

Answer 8

Both business related and personal emails are required to be recorded and maintained for five years.

Question 9

True or false: A trust with over 5 million under management is an accredited it investor under regulation D.

Answer 9

True

Question 10

The provisions of the securities exchange act of 1934 applies which market?

Answer 10

Secondary

Question 11

T or F: The provisions of the securities exchange act of 1934 apply to trading rules for both exempt securities and non-exempt securities.

Answer 11

False. They apply only to the trading rules for nonexempt securities.