WGU D385 OA EXAM / WGU D385 LOGGING AND
SECURITY ISSUES OBJECTIVE ASSESSMENT NEWEST
2024 ACTUAL EXAM TEST BANK 200 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |
ALREADY GRADED A+
To which securities market does the Securities Act of 1933 apply?
A) Fourth.
B) Primary.
C) Secondary.
D) Third. - ANSWER: B) Primary.
The Securities Act of 1933 covers all of the following EXCEPT:
A) liabilities for misleading filings.
B) prospectus requirements.
C) full and fair disclosure.
D) blue-sky laws. - ANSWER: D) blue-sky laws.
The purpose of the Securities Act of 1933 is to provide investors with full disclosure
about a new securities issue. The act is federal in scope, whereas blue-sky laws refer
to STATE securities regulations.
**Which of the following are characteristics of the Securities Act of 1933?
Requires registration of exchanges.
Called the Truth in Securities Act.
Requires full and fair disclosure of material facts.
Enabled the Federal Reserve Board to determine margin requirements.
A) II and III.
B) I and II.
C) I and III.
D) II and IV. - ANSWER: A) II and III.
The provisions of the Securities Act of 1933 include all of the following EXCEPT:
A) requirement that an issuer provide full and fair disclosure about an offering.
B) regulation of the secondary market.
C) regulation of offerings of new securities.
D) prohibition of fraud in the sale of new securities. - ANSWER: B) regulation of the
secondary market.
,The Act of 1933 applies to all of the following EXCEPT:
A) registration of new issues .
B) full and fair disclosure.
C) prospectus preparation.
D) regulation of insider trading. - ANSWER: D) regulation of insider trading.
The regulation of insider trading is covered under the Act of 1934.
** The Act of 1933 deals with new issues and related disclosures.
**Which of the following are defined as securities?
Fixed annuities.
Variable annuity units.
Investment company shares.
Negotiable CDs insured by the FDIC.
A) II and III.
B) I and III.
C) I and IV.
D) II and IV. - ANSWER: A) II and III.
A security is any investment for profit with management performed by a third party,
in which an element of risk is present.
The Securities Exchange Act of 1934 regulates or mandates each of the following
EXCEPT:
A) manipulation of the secondary market.
B) extension of credit to customers.
C) full and fair disclosure on new offerings.
D) creation of the SEC. - ANSWER: C) full and fair disclosure on new offerings.
**The Securities Exchange Act of 1934 covers all of the following EXCEPT:
A) trading on exchanges.
B) trading of corporate securities.
C) issuance of financial reports by corporations.
D) issuance of corporate securities. - ANSWER: D) issuance of corporate securities.
The Securities Exchange Act of 1934 regulates secondary trading or trading markets,
including reporting requirements. The Securities Act of 1933 regulates the issuance
of new, nonexempt securities.
The Securities Exchange Act of 1934
requires registration of nonexempt securities
regulates trading in the secondary market
,prohibits fraud in the distribution of new issues
created the SEC
A) II and III
B) II and IV
C) I and III
D) I and IV - ANSWER: B) II and IV
The Securities Exchange Act of 1934 regulates secondary market activity and
prohibits fraud in those markets. It created the SEC, which oversees all trading
activity. The Securities Act of 1933 requires that nonexempt securities be registered
and prohibits fraud in the distribution of new issues.
Which of the following are SROs?
FINRA.
SIPC.
SEC.
Chicago Stock Exchange.
A) I and IV.
B) I and III.
C) II and III.
D) II and IV. - ANSWER: A) I and IV.
FINRA. Chicago Stock Exchange.
Like FINRA, the exchanges are registered with the SEC. FINRA regulates the OTC
market and members of the New York Stock Exchange, whereas the other exchanges
regulate transactions occurring on their trading floors. The SEC is a federal
commission, not an SRO. All SROs are subject to SEC oversight.
**All of the following are covered under the Securities and Exchange Act of 1934
EXCEPT:
A) proxy solicitation.
B) margin.
C) trust indentures.
D) short sales. - ANSWER: C) trust indentures.
Trust Indentures are covered under the trust indenture act of 1939.
Which of the following acts requires corporate public issuers to send annual reports
to their shareholders?
A) Trust Indenture Act of 1939.
B) Securities Investors Act of 1970.
C) Securities Exchange Act of 1934.
D) Securities Act of 1933. - ANSWER: C) Securities Exchange Act of 1934.
, The Securities Exchange Act of 1934 requires public issuers to inform the
shareholders of their operations at least on an annual basis.
**The Securities Act of 1934 deals with all of the following EXCEPT:
A) filing an updated prospectus .
B) filing of financial statements by broker/dealers.
C) monitoring accounts for insider trading violations.
D) marking sales long or short on an order ticket. - ANSWER: A) filing an updated
prospectus .
Which of the following will NOT be found in a final prospectus?
A) Statement that the SEC neither approves nor disapproves of the issue.
B) Agreement among underwriters.
C) Business plan.
D) Date and offering price. - ANSWER: B) Agreement among underwriters.
**Which of the following statements regarding a red herring is NOT true?
A) The final offering price does not appear in a red herring.
B) Additional information may be added to a red herring at a later date.
C) An agent may accept funds to be placed in escrow until the effective date if the
request to do so is made by a potential purchaser.
D) A red herring is used to accept indications of interest from investors. - ANSWER:
C) An agent may accept funds to be placed in escrow until the effective date if the
request to do so is made by a potential purchaser.
*An agent is not permitted to accept funds from potential purchasers of a new issue
before the effective date.
If a company has filed a registration statement for an initial public offering of its
common stock with the SEC, as a registered representative you may take which of
the following actions?
I. Send out a research report on the company to your customers.
II. Take indications of interest from your customers.
III. Send a preliminary prospectus to each of your customers.
IV. Take orders for the stock from customers in cash accounts only.
A) II and III.
B) I and III.
C) I and IV.
D) II and IV. - ANSWER: A) II and III.
New issues may be sold only by prospectus. Indications of interest may be taken
when the issue is in registration. During the registration period, only the preliminary
SECURITY ISSUES OBJECTIVE ASSESSMENT NEWEST
2024 ACTUAL EXAM TEST BANK 200 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |
ALREADY GRADED A+
To which securities market does the Securities Act of 1933 apply?
A) Fourth.
B) Primary.
C) Secondary.
D) Third. - ANSWER: B) Primary.
The Securities Act of 1933 covers all of the following EXCEPT:
A) liabilities for misleading filings.
B) prospectus requirements.
C) full and fair disclosure.
D) blue-sky laws. - ANSWER: D) blue-sky laws.
The purpose of the Securities Act of 1933 is to provide investors with full disclosure
about a new securities issue. The act is federal in scope, whereas blue-sky laws refer
to STATE securities regulations.
**Which of the following are characteristics of the Securities Act of 1933?
Requires registration of exchanges.
Called the Truth in Securities Act.
Requires full and fair disclosure of material facts.
Enabled the Federal Reserve Board to determine margin requirements.
A) II and III.
B) I and II.
C) I and III.
D) II and IV. - ANSWER: A) II and III.
The provisions of the Securities Act of 1933 include all of the following EXCEPT:
A) requirement that an issuer provide full and fair disclosure about an offering.
B) regulation of the secondary market.
C) regulation of offerings of new securities.
D) prohibition of fraud in the sale of new securities. - ANSWER: B) regulation of the
secondary market.
,The Act of 1933 applies to all of the following EXCEPT:
A) registration of new issues .
B) full and fair disclosure.
C) prospectus preparation.
D) regulation of insider trading. - ANSWER: D) regulation of insider trading.
The regulation of insider trading is covered under the Act of 1934.
** The Act of 1933 deals with new issues and related disclosures.
**Which of the following are defined as securities?
Fixed annuities.
Variable annuity units.
Investment company shares.
Negotiable CDs insured by the FDIC.
A) II and III.
B) I and III.
C) I and IV.
D) II and IV. - ANSWER: A) II and III.
A security is any investment for profit with management performed by a third party,
in which an element of risk is present.
The Securities Exchange Act of 1934 regulates or mandates each of the following
EXCEPT:
A) manipulation of the secondary market.
B) extension of credit to customers.
C) full and fair disclosure on new offerings.
D) creation of the SEC. - ANSWER: C) full and fair disclosure on new offerings.
**The Securities Exchange Act of 1934 covers all of the following EXCEPT:
A) trading on exchanges.
B) trading of corporate securities.
C) issuance of financial reports by corporations.
D) issuance of corporate securities. - ANSWER: D) issuance of corporate securities.
The Securities Exchange Act of 1934 regulates secondary trading or trading markets,
including reporting requirements. The Securities Act of 1933 regulates the issuance
of new, nonexempt securities.
The Securities Exchange Act of 1934
requires registration of nonexempt securities
regulates trading in the secondary market
,prohibits fraud in the distribution of new issues
created the SEC
A) II and III
B) II and IV
C) I and III
D) I and IV - ANSWER: B) II and IV
The Securities Exchange Act of 1934 regulates secondary market activity and
prohibits fraud in those markets. It created the SEC, which oversees all trading
activity. The Securities Act of 1933 requires that nonexempt securities be registered
and prohibits fraud in the distribution of new issues.
Which of the following are SROs?
FINRA.
SIPC.
SEC.
Chicago Stock Exchange.
A) I and IV.
B) I and III.
C) II and III.
D) II and IV. - ANSWER: A) I and IV.
FINRA. Chicago Stock Exchange.
Like FINRA, the exchanges are registered with the SEC. FINRA regulates the OTC
market and members of the New York Stock Exchange, whereas the other exchanges
regulate transactions occurring on their trading floors. The SEC is a federal
commission, not an SRO. All SROs are subject to SEC oversight.
**All of the following are covered under the Securities and Exchange Act of 1934
EXCEPT:
A) proxy solicitation.
B) margin.
C) trust indentures.
D) short sales. - ANSWER: C) trust indentures.
Trust Indentures are covered under the trust indenture act of 1939.
Which of the following acts requires corporate public issuers to send annual reports
to their shareholders?
A) Trust Indenture Act of 1939.
B) Securities Investors Act of 1970.
C) Securities Exchange Act of 1934.
D) Securities Act of 1933. - ANSWER: C) Securities Exchange Act of 1934.
, The Securities Exchange Act of 1934 requires public issuers to inform the
shareholders of their operations at least on an annual basis.
**The Securities Act of 1934 deals with all of the following EXCEPT:
A) filing an updated prospectus .
B) filing of financial statements by broker/dealers.
C) monitoring accounts for insider trading violations.
D) marking sales long or short on an order ticket. - ANSWER: A) filing an updated
prospectus .
Which of the following will NOT be found in a final prospectus?
A) Statement that the SEC neither approves nor disapproves of the issue.
B) Agreement among underwriters.
C) Business plan.
D) Date and offering price. - ANSWER: B) Agreement among underwriters.
**Which of the following statements regarding a red herring is NOT true?
A) The final offering price does not appear in a red herring.
B) Additional information may be added to a red herring at a later date.
C) An agent may accept funds to be placed in escrow until the effective date if the
request to do so is made by a potential purchaser.
D) A red herring is used to accept indications of interest from investors. - ANSWER:
C) An agent may accept funds to be placed in escrow until the effective date if the
request to do so is made by a potential purchaser.
*An agent is not permitted to accept funds from potential purchasers of a new issue
before the effective date.
If a company has filed a registration statement for an initial public offering of its
common stock with the SEC, as a registered representative you may take which of
the following actions?
I. Send out a research report on the company to your customers.
II. Take indications of interest from your customers.
III. Send a preliminary prospectus to each of your customers.
IV. Take orders for the stock from customers in cash accounts only.
A) II and III.
B) I and III.
C) I and IV.
D) II and IV. - ANSWER: A) II and III.
New issues may be sold only by prospectus. Indications of interest may be taken
when the issue is in registration. During the registration period, only the preliminary
