Chapter 2 Flashcards
(7 cards)
What organization consists of state regulators and is responsible for updating the stated securities laws(Blue Sky)?
The North American Securities Administrators Association (NASAA)
What is the state model law that is sometimes referred to as “Blue Sky Laws?”
The Uniform Securites Act
What is the reasoning that the Investment Company Act of 1940 requires mutual funds to have significant percentage of its directors to be disinterested?
To protect shareholders against mismanagement impropriety
The purpose of _______ is to limit the spread of non public info within a broker dealer.
Information barriers
Who protects the customers of a broker dealer that is defunct (bankrupt)?
The SIPC
Who has the power to suspend an RR’s registration after a hearing is held?
An SRO
Who guarantees bank savings accounts, as well as CD’s that are held in a bank account?
The FDIC
