#1
Which regulatory body oversees securities trading in the United States?
SEC
ExplanationSEC oversees securities trading in the US.
#2
What does 'SEC' stand for in the context of securities regulation?
Securities Exchange Commission
Explanation'SEC' stands for Securities Exchange Commission.
#3
What is the primary goal of securities regulation?
To promote fair and efficient markets
ExplanationSecurities regulation aims to foster fair and efficient markets.
#4
Which of the following is NOT a type of security?
Cryptocurrency
ExplanationCryptocurrency is not a type of security.
#5
What is the role of the Securities and Exchange Commission (SEC) in securities regulation?
To oversee the issuance and trading of securities
ExplanationSEC oversees securities issuance and trading.
#6
What is the primary purpose of the Securities Investor Protection Corporation (SIPC)?
To provide protection for investors in case of brokerage firm insolvency
ExplanationSIPC protects investors in case of firm insolvency.
#7
Which act governs the regulation of securities in the United States?
Securities Act of 1933
ExplanationSecurities Act of 1933 governs securities regulation.
#8
What is insider trading?
Trading of securities based on material nonpublic information
ExplanationInsider trading is trading using nonpublic information.
#9
What is the 'blue sky' law?
State regulations governing the issuance and sale of securities
Explanation'Blue sky' laws regulate state securities issuance and sale.
#10
What is the role of the Financial Industry Regulatory Authority (FINRA)?
To enforce compliance with securities laws and regulations
ExplanationFINRA ensures compliance with securities laws.
#11
What is the 'quiet period' in securities regulation?
A period during which insiders are prohibited from trading the company's securities
ExplanationQuiet period prohibits insider trading.
#12
What is the function of the Investment Company Act of 1940?
To regulate the operations of investment companies
ExplanationInvestment Company Act of 1940 regulates investment firms.
#13
What is the purpose of the Securities Act of 1933?
To regulate the issuance of securities and require disclosure of information
ExplanationSecurities Act of 1933 regulates securities issuance and disclosure.
#14
What is the purpose of the Securities Exchange Act of 1934?
To regulate the secondary trading of securities
ExplanationSecurities Exchange Act of 1934 regulates secondary trading.
#15
What is the main purpose of the Jumpstart Our Business Startups (JOBS) Act?
To encourage small business funding and growth by easing securities regulations
ExplanationJOBS Act encourages small business growth through eased regulations.
#16
What does 'KYC' stand for in the context of securities regulation?
Know Your Customer
Explanation'KYC' stands for Know Your Customer.
#17
What is the role of the Public Company Accounting Oversight Board (PCAOB) in securities regulation?
To set accounting standards for public companies and audit firms
ExplanationPCAOB sets accounting standards for public firms and auditors.