SIe practice exam question and answers rated A+ verified to pass

SIe practice exam question and answers rated A+ verified to passThe Securities & Exchange Commission (SEC) was created by Congress in A 1929 B 1933 C 1934 D 1940 - correct answer 1934 The Act of '34 created the SEC. The term 'disclaimer' is most often associated with A The fact that no agent can guarantee a customer against loss B The fact that unregistered securities are more risky than registered ones C The fact that the government cannot guarantee the accuracy of the information in a prospectus D None of the above - correct answer The fact that the government cannot guarantee the accuracy of the information in a prospectus The SEC reviews the information in a registration statement, it does not approve or disapprove of the information, nor does it guarantee the accuracy of the information disclosures. Therefore no sales agent can say to a prospect that these are 'government approved' securities SIPC, the securities investor protection corporation is: A) An insurance entity which protects investors investments again market losses up to $500,000 B) An insurance entity which protects investors investments against losses up to ½ million dollars in market value in the event of broker-dealer bankruptcy C) A Congressional guarantee against losses in the securities markets D) None of the above - correct answer None of the above SIPC was set up to protect customer ACCOUNTS in the event of a broker-dealer bankruptcy, not protect investments against loss. Be careful of the wording in this question. Cash & securities in customer accounts are 'insured' up to $500,000 in the event the B/D goes bankrupt and the cash and securities can't be located and properly returned to the customer. In most cases, Federal Securities Laws: A Supersede State securities laws B Are subordinate to State securities laws C Are given the same weight as State securities laws