SIE EXAM CHAPTER 1 - 12 QUESTIONS & Answers. 100% approved. Rated A

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SIE EXAM CHAPTER 1 - 12 QUESTIONS & Answers. 100% approved. Rated A securities act of 1933 - ✔✔- governs new issuance in primary market - only raising activities of issuers - requires registr... ation of securities to public Securities Exchange Act of 1934 - ✔✔- governs trading markets for existing securities - registration requirements of bds, bd employees and exchanges investment company act 1940 - ✔✔governs regulation mutual funds close ended funds unit investment trusts investment advisor act of 1940 - ✔✔governs regulations firms that earn fees for providing investment advice securities investor protection act of 1970 (SIPA) - ✔✔covers customers in event of bd bankruptcy insider trading and securites fraud enforcement act of 1988 - ✔✔defines penalty for misuse of non public info for firms and individuals USA Patriot Act - ✔✔covers anti money laundering policies and procedures to be followed by finical firms what is the securities and exchange commission ? - ✔✔the securities industries primary regulatory body bds that sell securities must apply to be approved for registration with the sec regulates all exchanges and trading markets a bd who doesn't comply to sec rules is subject to what? - ✔✔censure limits on activities functions or operations suspension of its registration revocation of registration a fine what are self regulatory organizations or sros? - ✔✔they enforce federal securities laws and supervise securities practices under the SECS oversight what is the financial industry authority or finra? - ✔✔finra regulates: - securities underwriting - trading in otc markets - trading in nyse listed securites - investment companies - limited partnership transactions -conduct of finra member firms and associated people what are finras purpose and objectives? - ✔✔- standardize principles and practices /promote hhighstandard of commercial honor , encourage observance of fed and state security laws - provide a medium of communication among its members/ between members, gov, other agencies - adopt administer and enforce rules to prevent fraud and manipulation practices - promote self disciple among members and investigate and resolve grievances between public, members and between members what are finras conduct rules ? - ✔✔they establish a relationship between the firm and their customers conduct rules cover - fair dealing w customers, - compensation issues -standards for communication - sale practice violations what is finras uniform practice code? - ✔✔the upc covers technical aspects of trading and payment what does the upc deal with? - ✔✔good delivery of securites payment procedures for dividends on common stock and interest on bonds what its finras code of procedure ? - ✔✔covers the enforcement of FINRA rules and details punishment if violations occur COP decisions may be appealable to the sec What is the Code of Arbitration? - ✔✔a finra run dispute resolution process to settle monetary disputes what is the goal of the COA ? - ✔✔to proviide faster and cheaper resolutions rather than going to court - decisions are final and binding what's the Chicago board options exchange CBOE? - ✔✔regulates all matters related to trading standardized options and related contacts listed on that exchange what is the municipal securities board MRSB? - ✔✔regulates all underwriting and trading of state and manciple securities what is a key feature of the msrb? - ✔✔they regulate but do not have enforcement powers depends on other SRO (finra) for enforcing its rules who administers the us treasury department/ irs? - ✔✔They are administered by the Secretary of treasury who is a member of the cabinet what does the IRS do ? - ✔✔collects taxes and enforces tax laws what is the us treasury department ? - ✔✔an executive department and treasury of the US what is the Irs? - ✔✔a bureau of the US treasury department who does finra encourage investors to consult with? - ✔✔state securities regulator and North American securites administrations association what does the NASAA do? - ✔✔advocates pro investor polices provides investor education offers resources for the regulator community and scurites industry professionals what are state security laws sometimes referred to as? - ✔✔blue sky laws what does the federal reserve board consist of? - ✔✔12 regional reserve banks and hundreds of national and state banks what does the federal reserve board do? - ✔✔determines monetary policy and takes action to implement policies what are some monetary polices that the federal reserved board might partake in? - ✔✔acting as an agent of these traeaury regulating us supply of money setting reserve requirements for members supervising printing of currency clearing fund transfers throughout the system examine members to ensure compliance wiih fed regulations duding the deposit taking activities of member banks why are frb decisions critical for the us economy? - ✔✔because they determined how much money is available for business and consumers to spend what is the securities investor protection corporation or the SPIC? - ✔✔SIPC members pay into a insurance fund and it is used to meet customer claims n the event of bankrupt what bds registered with the SEC are exempt from being SIPC members? - ✔✔banks dealing with municipal securities firms that deal exclusively w gov securities firms that deal exclusively in redeemable investment company securities what does the SPIC determine? - ✔✔if the member as failed or is in danger of failing it will then petition a federal court to take action by appointing a trustee to liquidate the firm and protect customers what happens once the sipc files a petition the court? - ✔✔court issues a protective decree if bd is in danger and then will appoint a trustee to liquidate bd business once trustee is appointed firm is: - prohibited from engaging in business as a bd - firm cant conceal assets - cant file false statements - cant alter securites records to defraud the trustee or sipc what is basic coverage of SIPC? - ✔✔500k per separate customer not per separate account no more than 250k cash cash and margin acts are the same customer what happens if customer has claims in excess of sipc limits? - ✔✔they become a general creditor for the uncovered amount what isn't covered under the sipc? - ✔✔commodities commodities future contracts future contracts losses related to curencys anything not considered a security how must firms disclose of their sipc membership? - ✔✔-on all advertising - cant say its more than it is or benefits are unique - cant be larger than firms own name - post sign on premiss stating its covered by spic when must spic disclosure be made? - ✔✔- time accounts opened and to all customers at least one a yea [Show More]

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