Alabama Hall 2026 Exam
Questions and Answers |
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Securities Act of 1933 - ANSWER ✔✔Requires full and honest
disclose of information to investors
SEC (Securities Exchange Commission) - ANSWER ✔✔Federal
administrative agency that is empowered to: Adopt rules and regulations,
investigate violations, bring enforcement actions, and regulate activities
of brokers and advisors
, Sarbanes-Oxley Act - ANSWER ✔✔Protects banks and analysts who
would be pressured to give high marks to companies being assisted by
firm's investment bankers
Short-Swing Profits - ANSWER ✔✔Profits made by statutory insiders
on trades that occur within 6 months of each other
Statutory insiders - ANSWER ✔✔include officers, directors, or a 10%
shareholder in a company
Insider trading - ANSWER ✔✔The use of nonpublic information to
make a profit by trading securities of the company
Sec. 10(b) - ANSWER ✔✔prohibits the use of manipulative and
deceptive devices in the trading of securities
Sec. 10(b)-5 - ANSWER ✔✔Clarifies what is meant by "manipulative
and deceptive devices" by stating that it is fraudulent to make an untrue
statement or to omit a material fact and that only intentional conduct
(involving a scienter) is a violation
U.S. v. Bhagat - ANSWER ✔✔Bhagat bought stock in Nvidia after
learning of a large contract that his company had gotten with Microsoft's
X-Box