Regulatory Framework Flashcards
7 cards from real SIE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Regulatory Framework flashcards as text
Under SEC Rule 144, how long must an affiliate hold restricted securities before selling them in the public market?
Answer: 6 months
SEC Rule 144 requires affiliates to hold restricted securities for at least six months before selling them publicly.
The Securities Act of 1933 primarily regulates:
Answer: The issuance of new securities
The Securities Act of 1933 governs the primary market by requiring full disclosure in connection with the offer and sale of new securities.
A firm commitment underwriting arrangement means the underwriter:
Answer: Purchases all unsold shares from the issuer
In a firm commitment underwriting, the underwriter buys all securities from the issuer and assumes the risk of selling them to the public.
Which of the following transactions would be exempt from SEC registration under Regulation D?
Answer: A private placement to accredited investors
Regulation D provides a safe harbor exemption from SEC registration for private placements sold to accredited investors.
The 'cooling off' period after filing a registration statement with the SEC typically lasts at least:
Answer: 20 days
The SEC has a 20-day review period after an S-1 registration statement is filed before securities can be sold to the public.
An investor buys a Treasury bond in the secondary market from another investor. This transaction occurs on the:
Answer: Secondary market
When securities trade between investors after the initial offering, those transactions occur on the secondary market.
Under the Investment Company Act of 1940, a mutual fund must redeem shares at:
Answer: Net Asset Value (NAV)
Open-end investment companies (mutual funds) must redeem shares at the current NAV, calculated after receipt of a redemption request.