CSCP Securities Laws & Regulations 3

Question 1

Under Rule 144, what is the holding period requirement for restricted securities of a reporting company before they can be resold publicly?

Accepted Answer

6 months

Answer

30 days

Answer

1 year

Answer

2 years

Question 2

Which section of the Securities Act of 1933 provides a safe harbor for forward-looking statements made by public companies?

Accepted Answer

Section 27A

Answer

Section 5

Answer

Section 11

Answer

Section 12(a)(2)

Question 3

A broker-dealer that effects transactions in securities without registration is in violation of which section of the Exchange Act?

Accepted Answer

Section 15(a)

Answer

Section 9

Answer

Section 10(b)

Answer

Section 16

Question 4

The Bank Secrecy Act (BSA) requires broker-dealers to file a Suspicious Activity Report (SAR) within how many days of detecting suspicious activity?

Accepted Answer

30 days

Answer

10 days

Answer

15 days

Answer

60 days

Question 5

Under Regulation FD, if a company makes an unintentional selective disclosure of material non-public information, it must make public disclosure:

Accepted Answer

Within 24 hours or before the next trading day

Answer

Immediately

Answer

Within 48 hours

Answer

Within 5 business days

Question 6

Which exemption under the Securities Act allows companies to raise unlimited capital from accredited investors without SEC registration?

Accepted Answer

Regulation D Rule 506(b)

Answer

Regulation A+

Answer

Rule 504

Answer

Section 4(a)(2)

Question 7

The Jumpstart Our Business Startups (JOBS) Act of 2012 created a new category of issuer called an 'Emerging Growth Company' (EGC). What is the annual revenue threshold to qualify as an EGC?

Accepted Answer

Less than $1.07 billion

Answer

Less than $500 million

Answer

Less than $1 billion

Answer

Less than $2 billion