Series 7 – Regulations Exam 2025
Questions and Answers
SECURITIES ACT OF 33 - ANSWER✔✔-WRITTEN BC OF 29 CRASH, TO CURB NEW
ISSUE MARKETPLACE - PRIMARY MARKET
SECURITIES EXCHANGE ACT OF 34 - ANSWER✔✔-TO STOP MANIPULATIVE
PRACTICES IN SECONDARY MARKET
TRUST INDENTURE ACT OF 1939 - ANSWER✔✔-PASSED TO SAFEGUARD CORP
BOND HOLDERS BY MAKING ISSUER APPOINT TRUSTEE
INVESTMENT COMP ACT OF 1940 - ANSWER✔✔-REGULATE INVEST
COMPANIES AND PURCHASERS OF THEIR SECURITIES
SECURITIES INVESTOR PROTECTION ACT OF 1970 - ANSWER✔✔-PASSED TO
PROTECT CUSTOMER FUNDS WHEN BROKERAGE FAILS
SEC ACTS AMENDMENTS OF 75, 88 - ANSWER✔✔-IN 75, SEC ACTS WERE MADE
"MORE CURRENT" AND IN 88 THE 1934 ACT WAS AMENDED BECAUSE OF
INSIDER TRADING
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 1
,SARBANES OXLEY ACT OF 2002 - ANSWER✔✔-PASSED IN RESPONSE TO
CORPORATE SCANDALS IN CRASH OF 2000
SEC ACT OF 33 - ANSWER✔✔-APPLIES TO NON-EXEMPT ISSUES
REQUIRES PROSPECTUS
FULL AND FAIR DISCLOSURE
REGISTRATION STATEMENT - ANSWER✔✔-ACT OF 33, FIRM MUST REG WITH
SEC BEFORE SELLING SECURITY
CANNOT DURING 20 DAY COOLING OFF PERIOD - ANSWER✔✔-NO SALES
NO ADS
NO RECOMMENDATIONS
NO SOLICITED ORDERS
CAN DURING 20 DAY COOLING PERIOD - ANSWER✔✔-DISTRIBUTE
PRELIMINARY PROSPECTUS
DRAW UP INTERESTED CUSTOMER LIST
EFFECTIVE DATE - ANSWER✔✔-FIRST DATE AFTER 20 DAY COOLING,
PROVIDED FIRM HAS COMPLIED WITH SEC INFO REQUESTS
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
, 90 DAY PROSPECTUS DELIVERY - ANSWER✔✔-IF FIRST EVER ISSUE AND NOT
LISTEN ON EXCHANGE, DISTRIBUTE PROSPECTUS FOR 90 DAYS
40 DAY PROSPECTUS DELIVERY - ANSWER✔✔-IF SECOND ISSUE AND NOT
LISTED ON EXCHANGE, DISTRIBUTE PROSPECTUS FOR 40 DAYS
25 DAY PROSPECTUS DELIVERY - ANSWER✔✔-IF IPO ON EXCHANGE THEN
DELIVER PROSPECTUS FOR 25 DAYS
OMISSION OR MISTATEMENT OF MATERIAL FACT - ANSWER✔✔-FRAUD ON
PROSPECTUS - ANYBODY IN SUPPLY CHAIN OF PRODUCT CAN BE HELD
RELIABLE
REGULATION A - ANSWER✔✔-EZ REG RULE - QUICK REG FOR OFFERING UP TO
50mm - INTENDED TO MAKE CAPITAL RAISING EASY - LESS COSTLY FOR
STARTUPS
RULE 415 - ANSWER✔✔-EZ REG RULE - QUICK REG RULES FOR SEASONED
ISSUERS
REG A TIER 1 - ANSWER✔✔-GOOD FOR UP TO 20MM IN 12 MONTHS, NO
AUDITED FIN STATEMENTS
REG A TIER 2 - ANSWER✔✔-GOOD FOR OFFERINGS UP TO 50mm FOR 12
MONTHS, FIN STATEMENTS MUST BE AUDITED
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 3
Questions and Answers
SECURITIES ACT OF 33 - ANSWER✔✔-WRITTEN BC OF 29 CRASH, TO CURB NEW
ISSUE MARKETPLACE - PRIMARY MARKET
SECURITIES EXCHANGE ACT OF 34 - ANSWER✔✔-TO STOP MANIPULATIVE
PRACTICES IN SECONDARY MARKET
TRUST INDENTURE ACT OF 1939 - ANSWER✔✔-PASSED TO SAFEGUARD CORP
BOND HOLDERS BY MAKING ISSUER APPOINT TRUSTEE
INVESTMENT COMP ACT OF 1940 - ANSWER✔✔-REGULATE INVEST
COMPANIES AND PURCHASERS OF THEIR SECURITIES
SECURITIES INVESTOR PROTECTION ACT OF 1970 - ANSWER✔✔-PASSED TO
PROTECT CUSTOMER FUNDS WHEN BROKERAGE FAILS
SEC ACTS AMENDMENTS OF 75, 88 - ANSWER✔✔-IN 75, SEC ACTS WERE MADE
"MORE CURRENT" AND IN 88 THE 1934 ACT WAS AMENDED BECAUSE OF
INSIDER TRADING
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 1
,SARBANES OXLEY ACT OF 2002 - ANSWER✔✔-PASSED IN RESPONSE TO
CORPORATE SCANDALS IN CRASH OF 2000
SEC ACT OF 33 - ANSWER✔✔-APPLIES TO NON-EXEMPT ISSUES
REQUIRES PROSPECTUS
FULL AND FAIR DISCLOSURE
REGISTRATION STATEMENT - ANSWER✔✔-ACT OF 33, FIRM MUST REG WITH
SEC BEFORE SELLING SECURITY
CANNOT DURING 20 DAY COOLING OFF PERIOD - ANSWER✔✔-NO SALES
NO ADS
NO RECOMMENDATIONS
NO SOLICITED ORDERS
CAN DURING 20 DAY COOLING PERIOD - ANSWER✔✔-DISTRIBUTE
PRELIMINARY PROSPECTUS
DRAW UP INTERESTED CUSTOMER LIST
EFFECTIVE DATE - ANSWER✔✔-FIRST DATE AFTER 20 DAY COOLING,
PROVIDED FIRM HAS COMPLIED WITH SEC INFO REQUESTS
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
, 90 DAY PROSPECTUS DELIVERY - ANSWER✔✔-IF FIRST EVER ISSUE AND NOT
LISTEN ON EXCHANGE, DISTRIBUTE PROSPECTUS FOR 90 DAYS
40 DAY PROSPECTUS DELIVERY - ANSWER✔✔-IF SECOND ISSUE AND NOT
LISTED ON EXCHANGE, DISTRIBUTE PROSPECTUS FOR 40 DAYS
25 DAY PROSPECTUS DELIVERY - ANSWER✔✔-IF IPO ON EXCHANGE THEN
DELIVER PROSPECTUS FOR 25 DAYS
OMISSION OR MISTATEMENT OF MATERIAL FACT - ANSWER✔✔-FRAUD ON
PROSPECTUS - ANYBODY IN SUPPLY CHAIN OF PRODUCT CAN BE HELD
RELIABLE
REGULATION A - ANSWER✔✔-EZ REG RULE - QUICK REG FOR OFFERING UP TO
50mm - INTENDED TO MAKE CAPITAL RAISING EASY - LESS COSTLY FOR
STARTUPS
RULE 415 - ANSWER✔✔-EZ REG RULE - QUICK REG RULES FOR SEASONED
ISSUERS
REG A TIER 1 - ANSWER✔✔-GOOD FOR UP TO 20MM IN 12 MONTHS, NO
AUDITED FIN STATEMENTS
REG A TIER 2 - ANSWER✔✔-GOOD FOR OFFERINGS UP TO 50mm FOR 12
MONTHS, FIN STATEMENTS MUST BE AUDITED
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 3
