Series 99: Exercise

Exercise

Answer the following questions.

1. 1. The federal legislation that requires issuers of securities to register the securities and provide full disclosure to investors is the:
2. A. Securities Exchange Act of 1934
3. B. Uniform Securities Act of 1956
4. C. Securities Act of 1933
5. D. Investment Company Act of 1940
6. 2. What doesn’t happen to a customer’s account upon her death?
7. A. The account is frozen
8. B. All positions are liquidated
9. C. All open orders are cancelled
10. D. All powers of attorney are cancelled
11. 3. The disclosure document that municipal bond issuers offer to prospective investors is called a/n:
12. A. Prospectus
13. B. Trust indenture
14. C. Legal opinion
15. D. Official statement
16. 4. Terry Johnson just discovered that his broker-dealer put a 90-day freeze on his account because he bought and sold common stock before paying for the shares in a cash account. This means that he:
17. A. Cannot purchase securities until the freeze is lifted
18. B. Can purchase securities and pay for them by the settlement date
19. C. Can purchase securities provided he pays for them on the date of the trade
20. D. Cannot purchase securities for 10 business days

Answers

1. 1. C. The Securities Act of 1933, often referred to as the “Paper Act,” was the first U.S. law to require issuers of stocks to register them