Practice Test GeeksCLI - Certified Legal Investigator Practice Test
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Investment Analysis Flashcards

7 cards from real CLI practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Investment Analysis flashcards as text

  1. A company raises money in a private offering exempt from registration under Regulation D. What notice filing might an investigator find on EDGAR?

    Answer: Form D

    Issuers relying on Regulation D file a Form D notice with the SEC, which lists related persons and offering amounts.

  2. A person or group that acquires more than 5% of a public company's voting stock and intends to influence control must usually file which form?

    Answer: Schedule 13D

    Schedule 13D discloses beneficial ownership above 5% by holders who may seek to influence or change control.

  3. An investigator tracing hidden wealth finds money moving through several layers of shell companies and offshore accounts. Which money-laundering stage does this represent?

    Answer: Layering

    Layering separates illicit funds from their source through complex transactions that obscure the audit trail.

  4. In a net worth analysis, how are a subject's funds from unknown sources estimated?

    Answer: Increase in net worth plus living expenses, minus known income

    The net worth method treats net worth growth plus expenditures that exceed reported income as possible unexplained income.

  5. Which body handles most arbitration of disputes between investors and their brokerage firms?

    Answer: FINRA Dispute Resolution Services

    Most brokerage customer agreements require arbitration through FINRA's dispute resolution forum.

  6. A broker places personal orders right before executing a large client order that he expects will move the price. This misconduct is called:

    Answer: Front-running

    Front-running is trading ahead of a pending client order to profit from its expected effect on price.

  7. A broker sells investments that his firm does not approve or supervise, often outside its books. What is this practice called?

    Answer: Selling away

    Selling away happens when a registered representative sells securities outside the scope of the firm's supervision.

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