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Securities Exchange Act of 1933

Terms in this set (74)

The Securities Act of 1933 is primarily concerned with registration of:
A
broker-dealers
B
exempt issues
C
non-exempt issues
D
self-regulatory organizations
non exempt issues
All of the following securities are exempt from the registration provisions of the Securities Act of 1933 EXCEPT:
A
U.S. Government bonds
B
Government National Mortgage Association Pass Through certificates
C
Collateral Trust certificate
D
General Obligation bonds
Collateral Trust Certificate
Banker's Acceptances are:
A
money market instruments subject to the Securities Act of 1933
B
capital market instruments subject to the Securities Act of 1933
C
money market instruments exempt from the Securities Act of 1933
D
capital market instruments exempt from the Securities Act of 1933
C. Money market Instruments exempt from the Securities Act of 1933
The maximum maturity on a banker's acceptance is:
A
30 days, because a longer maturity would cause the issue to be non-exempt
B
90 days, because a longer maturity would cause the issue to be non-exempt
C
270 days, because a longer maturity would cause the issue to be non-exempt
D
360 days, because a longer maturity would cause the issue to be non-exempt
C
270 days, because a longer maturity would cause the issue to be non-exempt
Which statement is TRUE regarding Commercial Paper?
A
Commercial Paper may be sold without a prospectus
B
Commercial Paper must be sold with a prospectus
C
Commercial Paper must be sold with an Official Statement
D
Commercial Paper must be sold with an Offering Memorandum
A
Commercial Paper may be sold without a prospectus
Notice that the announcement does not include the legend that "this is not an offer to sell these securities. The securities can only be sold under the Prospectus."
The legend is required for non- exempt offerings
Which of the following securities are exempt from registration under the Securities Act of 1933?
I Insurance company issues
II Bank issues
III Savings and loan issues
IV Common carrier issues
ALL the Above

When the Securities Act of 1933 was written, issuers that were already regulated under other laws were generally exempted from the provisions of the Act. Insurance companies were already regulated under State insurance laws; banks and savings and loans were regulated by both State and Federal banking laws; common carriers were regulated by the Interstate Commerce Commission (now part of the Department of Transportation).
Which of the following is an exempt security under the Securities Act of 1933?
A
Unit Investment Trust
B
Small Business Investment Company
C
Open-End Investment Company
D
Closed-End Investment Company
B
Small Business Investment Company
All of the following are exempt securities under Securities Act of 1933 EXCEPT:
A
U.S. Government Bonds
B
U.S. Government Bond Trusts
C
Municipal Bonds
D
Small Business Investment Companies
B
U.S. Government Bond Trusts

U.S. Government Bond Trusts are an investment company whose shares (actually, these are termed "units") must be registered with the SEC under the Securities Act of 1933. Government bonds, municipal bonds, and Small Business Investment Company issues are all exempt securities under the 1933 Act.
Investment Companies formed under the Investment Company Act of 1940 are
non-exempt issues that must be registered with the SEC.
The types of investment companies defined by the Investment Company Act of 1940 are:Face Amount Certificate Company;Unit Investment Trust;Management Company.
Which of the following are non-exempt issues under the Securities Act of 1933?
I Fixed annuity contracts
II Variable annuity contracts
III Listed option contracts
IV Listed common stock
II, III, IV

Insurance company offerings are exempt from the 1933 Act with the exception of variable annuity and variable life contracts. Thus, a fixed annuity offered by an insurance company is exempt from the 1933 Act. Listed stocks, and stock options are non-exempt issues that must be registered with the SEC.
Which of the following are non-exempt securities under the Securities Act of 1933?
I Government National Mortgage Association Mortgage Pass Through Certificates
II Small Business Investment Company Shares
III Commercial Paper maturing over 270 days
IV Variable Annuity Contracts
III and IV

Government National Mortgage Association is owned by the U.S. Government. Its issues are exempt from the provisions of the Securities Act of 1933.
Small Business Investment Companies are also exempt from the Act's provisions (though regular Investment Company issues are non-exempt).
For commercial paper to be exempt, its maturity must be 270 days or less. Since the maturity in this question is over 270 days, this issue is non-exempt.
Variable annuity contracts are also a non-exempt security that must be registered under the 1933 Act, because the customer is basically buying a mutual fund in an insurance company "wrapper." Note, in contrast, that fixed annuities sold by insurance companies are not defined as a security and hence are not subject to registration requirements.
Which of the following is NOT subject to the registration requirements of the Securities Act of 1933?
A
American Depositary Receipts
B
American Depositary Shares
C
American Style Options
D
Foreign Currency Contracts
D
Foreign Currency Contracts
Which of the following securities are exempt from the Securities Act of 1933?
I Benevolent Association issues
II Small Business Investment Company issues
III Common Carrier issues
IV Industrial Company issues
I, II, III
Which of the following activities are allowed prior to the filing of the registration statement?
I Sending a customer a "red herring" preliminary prospectus
II Accepting an indication of interest from the customer
III Accepting a deposit from the customer
IV Accepting a firm order from the customer
NONE
Prior to the filing of the registration statement, nothing can be done. Once the registration statement is filed, a preliminary prospectus may be used to obtain indications of interest. Once the registration is effective, the final prospectus can be used to offer and sell the issue.
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