Securities Law & Regulations Flashcards
6 cards from real RIA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Securities Law & Regulations flashcards as text
The Securities Act of 1933 primarily regulates:
Answer: The issuance and initial sale of new securities
The Securities Act of 1933 governs the primary market—the initial offering and sale of new securities to the public.
Under the Securities Exchange Act of 1934, the SEC has authority over:
Answer: Secondary market trading and broker-dealers
The 1934 Act created the SEC and gave it authority to regulate securities exchanges, broker-dealers, and secondary market trading.
The Investment Company Act of 1940 primarily regulates:
Answer: Mutual funds and other investment companies
The Investment Company Act of 1940 regulates the organization, operation, and governance of investment companies, primarily mutual funds.
Which of the following is NOT a security under the Securities Act of 1933?
Answer: Fixed annuity contracts
Fixed annuity contracts are insurance products regulated by state insurance commissions, not federal securities laws.
Regulation D exempts certain offerings from full registration. Which investor type can participate in Reg D Rule 506(b) offerings?
Answer: Accredited investors and up to 35 sophisticated non-accredited investors
Rule 506(b) allows unlimited accredited investors and up to 35 sophisticated non-accredited investors, but general solicitation is prohibited.
Section 10(b) and Rule 10b-5 prohibit:
Answer: Fraud and material misrepresentations in connection with securities transactions
Rule 10b-5 prohibits fraud, material misrepresentations, and omissions of material fact in connection with the purchase or sale of securities.
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