RIA Securities Law & Regulations

Question 1

The Securities Act of 1933 primarily regulates:

Accepted Answer

The issuance and initial sale of new securities

Answer

Secondary market trading of existing securities

Answer

Investment adviser registration

Answer

Broker-dealer conduct

Question 2

Under the Securities Exchange Act of 1934, the SEC has authority over:

Accepted Answer

Secondary market trading and broker-dealers

Answer

Only mutual funds

Answer

Insurance products only

Answer

Banking regulations

Question 3

The Investment Company Act of 1940 primarily regulates:

Accepted Answer

Mutual funds and other investment companies

Answer

Investment advisers and their registration

Answer

Stock exchanges and trading rules

Answer

Pension fund management

Question 4

Which of the following is NOT a security under the Securities Act of 1933?

Accepted Answer

Fixed annuity contracts

Answer

Corporate stock

Answer

Treasury bonds

Answer

Investment contracts

Question 5

Regulation D exempts certain offerings from full registration. Which investor type can participate in Reg D Rule 506(b) offerings?

Accepted Answer

Accredited investors and up to 35 sophisticated non-accredited investors

Answer

Any U.S. citizen

Answer

Only institutional investors

Answer

Foreign investors only

Question 6

Section 10(b) and Rule 10b-5 prohibit:

Accepted Answer

Fraud and material misrepresentations in connection with securities transactions

Answer

All short selling

Answer

Trading after 4:00 PM

Answer

Investing in foreign securities