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

Rule 144 requires a minimum 6-month holding period for restricted securities of reporting companies before public resale.

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 27A of the Securities Act provides a statutory safe harbor protecting forward-looking statements accompanied by meaningful cautionary language.

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 15(a) of the Exchange Act makes it unlawful for any broker-dealer to effect securities transactions unless registered with the SEC.

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

Broker-dealers must file a SAR within 30 days of the initial detection of suspicious activity, with a 60-day extension if no suspect is identified.

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

For unintentional selective disclosure, Regulation FD requires public disclosure promptly, meaning within 24 hours or before the next trading day opens.

(CSCP) Certified Securities Compliance Professional Practice Test

(CSCP) Certified Securities Compliance Professional Practice Test

CSCP Securities Laws & Regulations 3