Badm300 Securities Exam Questions with Correct Answers

Badm300 Securities Exam Questions with Correct Answers


Question 1:
Security
Answer:
Equity and debt interest in a company



Question 2:
Security Act of 1933
Answer:
Regulates the issuance of security



Question 3:
Securities Exchange Act of 1934
Answer:
Regulates the trading of security



Question 4:
Sarbanes-Oxley Act
Answer:
2002: Added reporting requirements for companies



Question 5:
Dodd-Frank Wall Street Reform and Consumer Protection Act
Answer:
2010: Added more reporting requirements for companies



Question 6:
Securities Exchange Commission
Answer:
Investigates possible violations, makes rules thta apply to 1933 and 1934 act, relies on whistle
blowers

, Question 7:
Reporting Company
Answer:
1. Publicly traded



Question 8:
3. Has made more than $10 million in assets and has > 2000 shareholders Underwriter
Answer:
Organization (usually investment bank) that creates a market for the stock, keeps the % they
sell



Question 9:
Prefiling Period
Answer:
Company is not yet allowed to sell any securities, creates draft registration statement



Question 10:
Draft Registration Statement
Answer:
Huge document with all info about company



Question 11:
Quiet Period
Answer:
Company not allowed to communicate certain info to the public, can't finance any sales of stock



Question 12:
Post-Effective Period
Answer:
Registration statement has been approved and company can sell stock