Chapter 13

Question 1

SEC

Answer 1

Regulates securities

Question 2

Underwriting

Answer 2

Process of issuing stock to the public

Question 3

Underwriter

Answer 3

A securities firm that assists a corporation in offering stock to the public

Question 4

Direct listing

Answer 4

Alternative to ipo where shares are sold directly to the public

Question 5

SPAC

Answer 5

Alternative to ipo uses the proceeds of an ipo to find a target and take it public

Question 6

Up-C

Answer 6

A structure used by an LLC or partnership in an ipo that preserves the single, pass through tax status 355

Question 7

Equity security

Answer 7

Stock

Question 8

Debt security

Answer 8

Bond

Question 9

Registration statement

Answer 9

Filed with sec prior to issuance of securities to the public

Question 10

Prospectus

Answer 10

Primary part of registration statement.

Question 11

Tombstone ad

Answer 11

Announcement that securities are being issued by a corporation

Question 12

Exempt securities

Answer 12

Except from registration requirements of 1933 act like those issued by local state or federal govt, non profits, domestic banks etc 357

Question 13

Private placement offering

Answer 13

Private no public offering of stock

Question 14

Dealer

Answer 14

Firm that buys securities for resale to its customers

Question 15

Shelf registration

Answer 15

Registration of new stocks up to 3 years in advance of sales

Question 16

Section 12 company

Answer 16

Trade on national exchanges or those with significant assets that are required to register securities and file other reports with SEC 361

Question 17

Form 8k

Answer 17

Filed with SEC to report major events in a section 12 company 361

Question 18

Form 10Q

Answer 18

Quarterly report filed with SEC by section 12 company

Question 19

Form 10k

Answer 19

Annual report filed by section 12 company 362

Question 20

Rule 10b-5

Answer 20

Prohibition of insider trading

Question 21

Tipper v tipper

Answer 21

Insider trading tips 364

Question 22

Short swing profits

Answer 22

Profits made by corporate insiders within 6 months that must be disgorged

Question 23

EDGAR

Answer 23

Secs e filing system

Question 24

Blue sky laws

Answer 24

State laws regulating securities 368

Question 25

Registration by coordination

Answer 25

Allowance of a sale of stock within a state because issuance has been federally registered

Question 26

Registration by notice filing

Answer 26

Notice provided to state that issuer has filed federal registration statements and will be offering securities within state

Question 27

Registration by qualification

Answer 27

Requirement by state that issuer file info statement with state prior to issuance of stock 369

Question 28

Primary v secondary market

Answer 28

Securities firm v nyse nasdaq 370

Question 29

Stock exchange terms

Answer 29

371

Question 30

Block trade

Answer 30

10000 shares of stock

Question 31

Trading on margin v margin call

Answer 31

374

Question 32

Circuit breaker

Answer 32

Auto pause in trading.

Question 33

Pink sheet stocks

Answer 33

Not traded on a national securities exchange

Question 34

Microcar stock

Answer 34

Stock of companies with fewer assets and sold at a low price

Question 35

Tick

Answer 35

Smallest amount by which stock price changes

Question 36

Suitability rule , regulation best interest

Answer 36

Broker must act in best interest 379

Question 37

Spoofing and pump and dump

Answer 37

380

Question 38

Exchange traded fund ETF

Answer 38

Investment vehicle traded on exchange tied to an index

Question 39

Hedge fund

Answer 39

Portfolio of aggressively managed investments that caters to sophisticated investors

Question 40

Dogs of the Dow

Answer 40

384