Chapter 2 - Regulation Flashcards
If a broker-dealer declares bankruptcy, which of the following is fully covered by SIPC?
A) $200,000 in stock, $100,000 in cash, $75,000 in futures.
B) $300,000 in stock, $100,00 in cash.
C) $100,000 in stock, $300,000 in cash.
D) $200,000 in stock, $200,000 in cash and $25,000 in futures.
B) $300,000 in stock, $100,00 in cash.
MSRB rules do not apply to:
Issuers
The primary purpose of a self regulatory organization is to:
Promote fair and equitable practices among members.
Promoting fair and equitable practices among members BEST describes:
self-regulatory organizations (SROs)
“Blue Sky Laws” were established by the:
Uniform Securities Act (USA)
The Investment Advisers Act of 1940 regulates which of the following?
A) The markup charged by a financial services firm on a securities transaction.
B) The fee charged by an accountant for providing advice concerning securities.
C) The fee charged by a bank to hold securities.
D) The fee charged by an accountant when filing a clients tax returns.
B) The fee charged by an accountant for providing advice concerning securities.
The _____ is responsible for supervising registered representatives.
principal
The _____ controls the money supply and interest rates.
Federal Reserve Board
The _____ insures bank depositors.
FDIC
_____ enforces the uniform securities act.
Blue-Sky
If limits exceed SIPA coverage, customer becomes a:
general creditor
Uses an A-B-C test to determine whether an entity is subject to its rules.
Investment Advisers Act of 1940
Act that limits unsolicited phone calls during specific hours of the day.
Telephone Consumer Protection Act of 1991
Responsible for implementing Anti-Money Laundering rules.
USA Patriot Act of 1940
Established full and fair disclosure rules for new offerings.
Securities Act of 1933
