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Flashcards in Regulations Part Two Deck (19):
0

Miss perms is a memory device to remember the articles of what act passed by congress?

Securities exchange act of 1934

1

What does the M in miss perms stand for?

Manipulation- of the market became fraud.

2

What does the I in mIss perms stand for?

Insider- under the act it defines who an insider is and that they are forbidden from profiting from information about their corporation.

3

What does the S stand for in miSs perms?

S- SEC was created

4

What does the second S in misS perms stand for?

S- sec developed short sale rules when it comes to selling securities short or borrowed securities.

5

What does the p in miss perms stand for?

P-proxy rule. Outside proxys of share holders became regulated to make takeover attempts fair to shareholders.

6

What does the E stand for in miss perms?

Exchanges- must now register with the SEC. and regulate themselves under SEC guidelines as must their members.

7

What does the r stand for in miss perms?

R- reports. Cooperate issuers must file annual and quarterly financial reports which are now public information.

8

What does the last S stand for in miss perms?

Stabilization- even though manipulation is prohibited as fraud, stabilization of a new issue is allowed under SEC rules.

9

What does the second M in miss perms stand for?

Margin- control over credit on securities was given to the federal reserve.

10

Under "M" manipulation clause of the securities exchange act of 1934, a wash sale describes which prohibited action?

Buying and selling the same security to create the appearance of trade activity.

11

Under rule 10b-5 what is prohibited?

Catch all rule. Any fraudulent activity that wasn't specifically thought of but still considered wrong or fraudulent is illegal and prosecutable under this rule.

12

Under the I clauses defining insiders and prohibited activities, who is held liable in an insider trade?

Both the tipper and the tippee

13

Regulation SHO covers what?

Requires that every order ticket to sell be marked shirt or long. With a short sale defined as a sale of borrowed shares delivered on settlement.

14

Proxy rules. Explain 13d form vs 13g form.

13d any person who acquires a 5% position in a company with intent of crating a power position.
13g. Any person who accumulates a 5% position in a company with intent of remaining a passive investor.

15

10k and 10q reports are required for corporate issuers. What's on these reports and what makes them different?

10k are audited quarterly financial reports.
10q are quarterly unaudited financial reports.

16

Regulation T covers controlling credit from who to who?

Broker to customer

17

Regulation u covers controlling credit from who to who

Bank to broker

18

Informer bounty

The insider trading act allows for up to 10-30% of anything collected in fines over 1,000,000 to go to informants.