Series 65 Test Geek Exam 2025
Questions and Answers
in the primary market, a B/D is the same as - ANSWER✔✔-underwriter or investment broker
what regulates the primary market? - ANSWER✔✔-Securities Act of 1933
what regulates the secondary market? - ANSWER✔✔-Securities Exchange Act of 1934
what is the Securities Act of 1933? - ANSWER✔✔-full and fair disclosure
of all new issues
through a prospectus
what is the cool off period from the SEC before the IPO?
a. 30 days
b. 20 days
c. 60 days
d. 10 days - ANSWER✔✔-b. 20 days
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
,what is allowed to be published during a cool off period? - ANSWER✔✔-preliminary prospectus
and tombstone ad
what is another name for a preliminary prospectus? - ANSWER✔✔-red herring
what is a tombstone ad? - ANSWER✔✔-generic notice of sale
what is a cool off period? - ANSWER✔✔-SEC review period before IPO of common stock
the SEC _____ registration of common stock
a. approves
b. clears
c. guarantees
d. denies - ANSWER✔✔-b. clears
what is the difference between a preliminary and final prospectus? - ANSWER✔✔-the final
included the offering price
how is stock traded after the IPO? - ANSWER✔✔-in the secondary market
what is the secondary market? - ANSWER✔✔-exchange or OTC
who oversees the extension of credit in the securities industry?
a. SEC
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, b. FRB
c. FINRA
d. NASAA - ANSWER✔✔-b. FRB
what is the Securities Exchange Act of 1934? - ANSWER✔✔-regulates the secondary market
through SCAM
SCAM - ANSWER✔✔-SEC
Credit extension (FRB through Reg T)
Anti-fraud provision
Manipulation
how does the FRB regulate extension of credit? - ANSWER✔✔-through Reg T
what is the Insider Trading Act of 1986 - ANSWER✔✔-expansion of '34 Act to include those who
provided information as well as those who acted on it
what is the Insider Trading Act of 1986 also known as? - ANSWER✔✔-tipper - tippee
under the Insider Trading Act '86, can a informer still be liable to others within the company? -
ANSWER✔✔-yes because of 'Chinese Wall'
what is the civil penalty for breaking the Insiders Trading Act of 1986? - ANSWER✔✔-$1 M or 3x
profits made/losses avoided (whichever is greater)
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 3
Questions and Answers
in the primary market, a B/D is the same as - ANSWER✔✔-underwriter or investment broker
what regulates the primary market? - ANSWER✔✔-Securities Act of 1933
what regulates the secondary market? - ANSWER✔✔-Securities Exchange Act of 1934
what is the Securities Act of 1933? - ANSWER✔✔-full and fair disclosure
of all new issues
through a prospectus
what is the cool off period from the SEC before the IPO?
a. 30 days
b. 20 days
c. 60 days
d. 10 days - ANSWER✔✔-b. 20 days
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
,what is allowed to be published during a cool off period? - ANSWER✔✔-preliminary prospectus
and tombstone ad
what is another name for a preliminary prospectus? - ANSWER✔✔-red herring
what is a tombstone ad? - ANSWER✔✔-generic notice of sale
what is a cool off period? - ANSWER✔✔-SEC review period before IPO of common stock
the SEC _____ registration of common stock
a. approves
b. clears
c. guarantees
d. denies - ANSWER✔✔-b. clears
what is the difference between a preliminary and final prospectus? - ANSWER✔✔-the final
included the offering price
how is stock traded after the IPO? - ANSWER✔✔-in the secondary market
what is the secondary market? - ANSWER✔✔-exchange or OTC
who oversees the extension of credit in the securities industry?
a. SEC
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
, b. FRB
c. FINRA
d. NASAA - ANSWER✔✔-b. FRB
what is the Securities Exchange Act of 1934? - ANSWER✔✔-regulates the secondary market
through SCAM
SCAM - ANSWER✔✔-SEC
Credit extension (FRB through Reg T)
Anti-fraud provision
Manipulation
how does the FRB regulate extension of credit? - ANSWER✔✔-through Reg T
what is the Insider Trading Act of 1986 - ANSWER✔✔-expansion of '34 Act to include those who
provided information as well as those who acted on it
what is the Insider Trading Act of 1986 also known as? - ANSWER✔✔-tipper - tippee
under the Insider Trading Act '86, can a informer still be liable to others within the company? -
ANSWER✔✔-yes because of 'Chinese Wall'
what is the civil penalty for breaking the Insiders Trading Act of 1986? - ANSWER✔✔-$1 M or 3x
profits made/losses avoided (whichever is greater)
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 3
