FINRA Series 6

The principal purpose of the Securities Act of 1933 is to:

1. ARegulate trading on the exchanges and the over-the-counter market, and supervise the broker-dealers and exchanges that conduct it
2. BSet net capital and customer protection standards for the broker-dealers that sell new issues to the public
3. CEstablish the SEC and require the broker-dealers that sell securities to the public to register with it
4. DRequire full and fair disclosure of material facts when securities are offered to the public for the first timeCorrecta

Por qué: The Securities Act of 1933 governs the primary market, requiring registration of new offerings and delivery of a prospectus so investors can judge the offering for themselves. Regulation of trading in the secondary market, creation of the SEC, broker-dealer registration, and net capital and customer protection standards all come from the Securities Exchange Act of 1934 and its rules.Securities Act of 1933

How is the net asset value (NAV) per share of an open-end investment company calculated?

1. ATotal assets minus total liabilities, divided by the number of shares outstandingCorrecta
2. BThe market price of the fund's shares at the close of trading on the exchange
3. CTotal assets divided by the number of shares outstanding
4. DTotal assets minus total liabilities, divided by the number of shareholders of record

Por qué: NAV per share is the fund's net worth (assets less liabilities) spread over the shares outstanding, computed at least once each business day. Ignoring liabilities overstates value, so the first choice is wrong. Open-end fund shares do not trade on an exchange at a market price, and dividing by shareholders rather than shares produces a meaningless figure.Investment Company Act of 1940