Series 65 Laws and Regs General UPDATED ACTUAL Exam Questions and CORRECT Answers

Series 65 Laws and Regs General UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Securities Act of 1933 - CORRECT ANSWER - Full and fair disclosure of all NEW
ISSUES through the use of PROSPECTUS


Register with SEC... - CORRECT ANSWER - Starts 20 day cooling off period.
Underwriter can still send out preliminary prospectus (Red Herring) and Tombstone Ad (Generic
notice of sale, not an advertisement or solicitation)


After 20 days and you dont hear from the SEC... - CORRECT ANSWER - Security is
"Cleared" and you can then provide Final Prospectus and offering price.


Securities Act of 1934 - CORRECT ANSWER - A law governing the secondary trading of
securities in the US; established the SEC (Securities and Exchange Commission)."SCAM"


How oversees the extension of credit in the securities industry? - CORRECT ANSWER -
FRB. Reg T


Insider Trading Act '86 - CORRECT ANSWER - "Chinese Wall" Tipper-tippee. Everyone
will be held liable. Civil Penalty of $1mm or 3x profits or losses avoided (whichever is greater)


When is a B/D required to register in a state? - CORRECT ANSWER - -Has a place of
business in that state OR
-Has a RETAIL client


When is a B/D NOT required to register in a state? - CORRECT ANSWER - -NO place of
business
AND