SIE Unit 1c Quiz

Under the Uniform Securities Act, states have which of the following 2 ways to register securities to be sold?

Coordination and Qualification

Underwriters who are assisting an issuer in bringing securities to the investing public can do which of the following between the time the registration was filed with the SEC and the effective date can do what?

Distribute a preliminary prospectus to the investing public

Which of the following best describes a final prospectus?

Meets the full and fair disclosure requirements of the Securities Act of 1933

Are tombstone advertisements mandatory?

NO

Is a limited partnership exempt under the securities act of 1933?

NO

Regarding the purchase of new equity issues (IPOs), can restricted persons purchase shares of a new issue?

NO

When the money supply in the economy decreases, what happens to interest rates? Do they rise/fall?

Rise

Broker-dealers and registered representatives may be subject to each of the following administrative and regulatory bodies EXCEPT what?

SIPC because it is NOT a regulatory body, it is more of an insurance corporation

T or F: Regarding FINRA membership or the membership of another self-regulatory organization (SRO) Member firms can offer all types of investment products, such as stocks, bonds, mutual funds, options and others, or limit the products they offer to only a few.

T

Sales for new issues of securities may be solicited before/during/after the cooling off period?

after

Which benchmark interest rate indicates the direction of the Federal Reserve Board's monetary policy?

discount rate

A preliminary prospectus is used to solicit what?

indications of interest before the effective date

The prime rate is set by whom?

individual banks