Chapter 1 Flashcards Preview

Series 7 > Chapter 1 > Flashcards

Flashcards in Chapter 1 Deck (9)
Loading flashcards...
1
Q

The securities act of 1933 regulates _______________

A

new issues

2
Q

What is the primary purpose of the securities act of 1933?

A

provide investors with full and fair disclosure

3
Q

The securities exchange act of 1934 regulates the ______________

A

Secondary Market

4
Q

What U.S. Government Agency, created by the ‘34 Act, enforces securities laws?

A

SEC

5
Q

Name some Self-Regulatory Organizations (SRO’s)

A

FINRA, MSRB, CBOE

6
Q

What is the role of an SRO?

A

Maintain fair and orderly securities markets and establish rules and regulations for protecting investors

7
Q

The_______________________________________ is the SRO for the OTC market.

A

The Financial Industry Regulatory Authority (FINRA) is the SRO for the OTC market.

8
Q

What is FINRA’s primary objective?

A

To adopt, administer, and enforce rules in the securities industry.

9
Q

Which department of a broker-dealer handles the underwriting and issuance of securities for clients?

A

Investment banking