FINRA SIE — Fundamentos de la Industria de Valores — Todas las Preguntas

Una inversionista no acreditada tiene ingresos anuales de $90,000 y un patrimonio neto de $400,000. En 12 meses, ¿cuál es lo máximo que puede invertir en todas las ofertas de Regulation Crowdfunding?

• a.$4,500
• b.$9,000
• c.$20,000✓
• d.$40,000

Cuando los ingresos anuales o el patrimonio neto son inferiores a $124,000, el límite es el mayor entre $2,500 o 5% de la mayor cifra entre ingresos y patrimonio neto. Sus ingresos son inferiores a $124,000, así que el 5% de la cifra mayor, $400,000, da $20,000. Tomar 10% del patrimonio da $40,000, que solo aplica cuando ambas cifras son al menos $124,000. Usar solo los ingresos da $4,500 al 5% o $9,000 al 10%, pero la regla usa la mayor de las dos cifras.Regulation Crowdfunding Rule 100(a)(2)

Una empresa privada quiere recaudar $50 millones en 12 meses del público general, incluidos inversionistas no acreditados, mediante una declaración de oferta que la SEC califica en lugar de registrar. ¿Qué exención encaja?

• a.Regulation A, Nivel 1
• b.Regulation Crowdfunding
• c.Regulation A, Nivel 2✓
• d.Regla 504 de la Regulación D

La Regulation A permite a los emisores hacer ofertas públicas calificadas por la SEC sin un registro completo. El Nivel 2 permite hasta $75 millones en 12 meses, así que $50 millones encajan. El Nivel 1 tiene un tope de $20 millones. Regulation Crowdfunding tiene un tope de $5 millones y debe realizarse a través de la plataforma de un intermediario. La Regla 504 tiene un tope de $10 millones.Regulation A Rule 251(a)(2)

Un emisor que no es informante ante la SEC vendió $3.5 millones en valores bajo la Regla 504 hace cinco meses. ¿Cuál es lo máximo que puede vender ahora bajo la Regla 504?

• a.$6.5 millones✓
• b.$10 millones
• c.$3.5 millones
• d.$13.5 millones

La Regla 504 limita el precio total de la oferta a $10 millones, menos los valores vendidos en los 12 meses anteriores y durante la oferta. Con $3.5 millones vendidos hace cinco meses, la capacidad restante es $10 millones - $3.5 millones = $6.5 millones. Los $10 millones completos ignoran la venta anterior, $3.5 millones solo la repite y $13.5 millones la suma en lugar de restarla.Securities Act Rule 504(b)(2)

Una corporación de Delaware tiene su sede principal en Ohio y obtiene allí 85% de sus ingresos. Anuncia una oferta de acciones en línea y vende solo a residentes de Ohio. ¿Puede usar la Regla 147A?

• a.Sí, pero solo si los compradores mantienen las acciones un año antes de revenderlas
• b.No, porque el emisor debe estar constituido en el estado donde vende
• c.Sí, porque la regla permite publicidad en línea si todas las ventas son a residentes de Ohio✓
• d.No, porque cualquier publicidad en línea hace la oferta interestatal

La Regla 147A considera residente a un emisor donde está su sede principal, así que la constitución en Delaware es irrelevante, y la prueba de 80% de ingresos locales es una forma de demostrar que opera allí. La regla permite expresamente la solicitación general y la publicidad, siempre que todas las ventas sean a residentes del estado del emisor. Las reventas se limitan a residentes del estado durante seis meses, no un año.Securities Act Rule 147A

¿Qué comprador califica como comprador institucional calificado (QIB) para una reventa bajo la Regla 144A?

• a.Una aseguradora que invierte $60 millones en valores no afiliados
• b.Un individuo adinerado que posee personalmente $150 millones en valores
• c.Un corredor registrado que posee e invierte $12 millones en valores no afiliados de forma discrecional✓
• d.Una corporación que posee e invierte $90 millones en valores no afiliados

Según la Regla 144A(a)(1), un corredor registrado es QIB si posee e invierte de forma discrecional al menos $10 millones en valores de emisores no afiliados, así que $12 millones califican. La prueba de $100 millones cubre instituciones como aseguradoras y corporaciones, por lo que $60 millones y $90 millones no alcanzan. Una persona natural no puede ser QIB por grande que sea su cartera.Securities Act Rule 144A(a)(1)

¿Qué oferta primaria de bonos municipales está exenta de la Regla 15c2-12?

• a.$3 millones en pagarés con vencimiento a 18 meses, vendidos al público en denominaciones de $5,000
• b.$2 millones en bonos con denominaciones de $5,000, vendidos a 20 instituciones que compran cada una por cuenta propia
• c.$2 millones en bonos con denominaciones mínimas de $100,000, vendidos a 20 instituciones que compran cada una por cuenta propia✓
• d.$2 millones en bonos con denominaciones mínimas de $100,000, vendidos a 50 inversionistas institucionales

La Regla 15c2-12(d)(1) exime una oferta primaria en denominaciones autorizadas de $100,000 o más vendida a no más de 35 personas sofisticadas que no compran para más de una cuenta ni con miras a distribuir, o una con vencimiento de nueve meses o menos. La primera oferta cumple la prueba de denominación y la de 35 compradores. Las denominaciones de $5,000 no cumplen la prueba de denominación, 50 compradores exceden el tope y 18 meses exceden el límite de nueve meses.SEC Rule 15c2-12(d)(1)

Un suscriptor y una ciudad firman el contrato de compra de bonos el lunes 16 de noviembre de 2026. La Regla 15c2-12 exige que el suscriptor pacte recibir el estado oficial final dentro de siete días hábiles. ¿Para qué fecha debe entregarse?

• a.El viernes 20 de noviembre, el final de esa semana
• b.El lunes 23 de noviembre, siete días calendario después
• c.El martes 24 de noviembre, contando el 16 de noviembre como el día uno
• d.El miércoles 25 de noviembre✓

La Regla 15c2-12(b)(3) exige el estado oficial final dentro de siete días hábiles después del acuerdo final. Contando desde el siguiente día hábil: 17 (1), 18 (2), 19 (3), 20 (4), 23 (5), 24 (6) y 25 (7) de noviembre, así que el plazo es el miércoles 25 de noviembre, sin feriados en el período. El 23 de noviembre cuenta días calendario. El 24 de noviembre cuenta la fecha del acuerdo como día uno. El 20 de noviembre son solo cuatro días hábiles.SEC Rule 15c2-12(b)(3)

Un corredor del grupo de venta que no es miembro del sindicato vende un bono municipal de nueva emisión a un cliente. Según la Regla G-32 de la MSRB, ¿para cuándo debe entregar el estado oficial a ese cliente?

• a.No tiene que hacerlo, porque solo el administrador del sindicato debe entregarlo
• b.Dentro de siete días hábiles después de la fecha de la operación
• c.A más tardar en la liquidación de la operación, lo pida o no el cliente✓
• d.Solo si el cliente pide una copia, dentro de un día hábil de la solicitud

La Regla G-32(a) prohíbe a cualquier corredor vender un valor municipal ofrecido a un cliente, como suscriptor o de otro modo, sin entregar el estado oficial a más tardar en la liquidación de la operación. Aplica a todo corredor vendedor, no solo a miembros del sindicato, y no depende de una solicitud. El plazo de siete días hábiles es la fecha de entrega del emisor al suscriptor en la Regla 15c2-12, y el deber de enviarlo al siguiente día hábil bajo solicitud es otra obligación de la Regla 15c2-12 para los suscriptores participantes.MSRB Rule G-32(a)(i)

Una ciudad ofrece bonos de obligación general mediante licitación competitiva y dos sindicatos presentan ofertas. ¿Cómo elige la ciudad al ganador?

• a.Elige a la firma que prefiere y negocia el margen con ella de antemano
• b.Adjudica los bonos al sindicato con más clientes en la ciudad
• c.Adjudica los bonos al sindicato que propone el mayor margen de suscripción
• d.Adjudica los bonos al sindicato cuya oferta da a la ciudad el menor costo de interés✓

En una oferta competitiva el emisor publica un aviso de venta y adjudica los bonos al postor que ofrece el menor costo de interés para el emisor, medido como costo neto de interés o costo verdadero de interés. Elegir una firma de antemano y negociar el margen describe una oferta negociada. Un margen mayor aumenta el costo del emisor en lugar de reducirlo, y la base de clientes no interviene en la adjudicación.Municipal competitive-sale practice (issuer notice of sale; no single MSRB rule)

Antes de licitar una nueva emisión municipal, un suscriptor participante debe obtener un estado oficial que el emisor considere final. ¿Qué elemento puede omitir ese documento?

• a.Un resumen de la deuda en circulación del emisor
• b.Los precios de oferta y las tasas de interés✓
• c.La fuente de pago de los bonos
• d.Los estados financieros del emisor

La Regla 15c2-12(b)(1) permite que el estado oficial preliminar omita solo los precios de oferta, las tasas de interés, la compensación de venta, el monto total del principal, el principal por vencimiento, las fechas de entrega, las calificaciones, otros términos que dependan de ellos y la identidad de los suscriptores. Todo lo demás, incluida la información financiera, la fuente de pago y la deuda del emisor, ya debe estar en el documento.SEC Rule 15c2-12(b)(1)

Según el compromiso de divulgación continua exigido por la Regla 15c2-12, ¿en cuánto tiempo después de un incumplimiento de pago de los bonos debe presentarse el aviso a la MSRB?

• a.Con el siguiente informe financiero anual
• b.Cinco días hábiles después del evento
• c.Diez días hábiles después del evento✓
• d.Treinta días calendario después del evento

La Regla 15c2-12(b)(5)(i)(C) exige que el compromiso proporcione a la MSRB aviso oportuno de los eventos enumerados, incluidos los incumplimientos de pago de principal e intereses, en no más de diez días hábiles después del evento. Treinta días es demasiado y cinco días hábiles es más corto de lo que exige la regla. Esperar al informe anual retrasaría el aviso de un evento importante mucho más allá del plazo.SEC Rule 15c2-12(b)(5)(i)(C)

A broker-dealer is participating in the initial public offering of a company that has never reported under the Exchange Act. How far ahead of sending the confirmation must a copy of the preliminary prospectus be delivered to any person expected to receive it?

• a.At least 48 hours before the confirmation is sent✓
• b.At least 24 hours before the confirmation is sent
• c.At least 72 hours before the confirmation is sent
• d.At least 5 business days before the confirmation is sent

Rule 15c2-8(b) requires delivery of the preliminary prospectus at least 48 hours before the confirmation of sale is sent for an IPO of a company that is not already reporting. Other delivery periods in the securities laws, such as the dealer prospectus periods of 25, 40 or 90 days, are about different obligations.17 CFR 240.15c2-8

An issuer is planning a Rule 506(b) private placement. Which condition must it satisfy?

• a.It may advertise freely, but every purchaser must be an accredited investor
• b.It may sell to any number of non-accredited purchasers if each one signs a risk acknowledgment
• c.It may not use general solicitation, and it may sell to no more than 35 non-accredited purchasers in any 90-day period✓
• d.It must register the offering with the SEC but may omit the prospectus delivery requirement

Rule 506(b) is a safe harbor with no general solicitation and a cap of 35 non-accredited purchasers in any 90 days; accredited investors are not counted toward that cap. Allowing advertising is the 506(c) route, which requires all purchasers to be accredited and verified. A signed acknowledgment does not lift the 35-purchaser limit.17 CFR 230.506

Investors who bought in an offering sue because the registration statement contained a material misstatement. Which party can be held liable under Section 11 of the Securities Act?

• a.Every underwriter of the offering, subject to a due diligence defense✓
• b.Only the issuer, because it alone files the statement
• c.The investor's registered representative, because he recommended the purchase
• d.The transfer agent that recorded the new shares

Section 11 reaches those who signed the registration statement, directors, experts for the parts they prepared, and every underwriter. Everyone except the issuer can defend by showing a reasonable investigation, the due diligence defense. The issuer's liability is essentially absolute. Registered representatives and transfer agents are not listed among the Section 11 defendants.Securities Act of 1933 Section 11

Regulation M Rule 105 restricts short selling before certain follow-on offerings. A person who sold the security short may not buy it in the offering if the short sale occurred during what restricted period?

• a.The 30 days before the registration statement is filed
• b.The shorter of the five business days before pricing or the period from the registration filing to pricing✓
• c.The 10 business days before the offering becomes effective
• d.The 90 calendar days before the first closing

Rule 105 prohibits buying offered securities from an underwriter, broker or dealer if the buyer sold short during the restricted period. That period is the shorter of the five business days before pricing, or the time from initial filing of the registration statement to pricing. The intent is to prevent depressing the market to get a lower offering price.17 CFR 242.105

A foreign issuer sells securities offshore under Regulation S Category 2 or 3 restrictions. What does the 40-day distribution compliance period generally restrict?

• a.Offers and sales to U.S. persons, other than distributors, during the period✓
• b.Any sale to a person located outside the United States, including one made by a distributor
• c.Any resale after the period by the original purchaser to another person in the market
• d.Any advertising of the issuer's products or services in overseas markets or media

Regulation S offers and sales made outside the United States can qualify for the safe harbor if offering restrictions are in place and, where a 40-day distribution compliance period applies, the offer or sale before the period expires is not made to a U.S. person or for a U.S. person's account, other than a distributor. The period does not bar sales to people outside the U.S.17 CFR 230.903(b)

Under Regulation SHO Rule 201, a stock falls 11% from the prior day's close and the short-sale circuit breaker is triggered. For how long do the short-sale price restrictions stay in effect?

• a.For the remainder of that day and the following day✓
• b.For one hour after the decline occurs, with no limit on the types of orders
• c.For the remainder of that day only, and trading resumes the next morning
• d.For the next five trading days following the decline in the price

Rule 201 applies when a covered security's price falls 10% or more from the prior day's closing price. The restriction then requires short sales to be priced above the national best bid and remains in force for the rest of that day and the following day. It is not limited to a single session, and it does not last a week.17 CFR 242.201(b)

An individual is convicted of willfully violating the Securities Exchange Act of 1934. What is the maximum criminal penalty for a natural person under Section 32(a)?

• a.A fine of up to $25,000,000 and no prison term
• b.A fine of up to $100,000 or imprisonment of up to one year
• c.A fine of up to $5,000,000, imprisonment of up to 20 years, or both✓
• d.Only a civil penalty, because criminal penalties apply to firms and not individuals

Section 32(a) provides that a person who willfully violates the Exchange Act or its rules may be fined up to $5,000,000, imprisoned up to 20 years, or both; if the offender is not a natural person, the fine can reach $25,000,000. The larger fine applies to firms and other entities, not to an individual.Exchange Act Section 32(a) (15 U.S.C. 78ff(a))

An underwriting syndicate is stabilizing the market for a newly offered stock. Which limit applies to its stabilizing bid?

• a.It may not be higher than the lower of the offering price or the stabilizing bid in the principal market✓
• b.It may be set at any price up to 10% above the offering price if the manager approves it
• c.It may be set at the public offering price or higher, to signal confidence in the issue to buyers and dealers
• d.It may be set at any price if the syndicate discloses the bid in a footnote on confirmations sent to buyers

Under Rule 104 stabilizing is meant only to prevent or slow a decline, so a bid may not exceed the lower of the offering price or the stabilizing bid in the principal market. Stabilizing is also prohibited in an at-the-market offering. A bid above the offering price would push the price up, which is manipulation rather than stabilization.17 CFR 242.104

A person trades on material nonpublic information. Who may bring a private action for damages under Section 20A of the Securities Exchange Act of 1934?

• a.Only the SEC, because Section 20A creates no private right of action for traders who were on the other side
• b.Only the issuer's shareholders of record on the first day of the year in which the violation happened
• c.Only customers of the violator's own broker-dealer who held the security during the trading day in question
• d.Anyone who traded the same class of securities on the opposite side at the same time as the violator✓

Section 20A gives a private right of action to any person who, contemporaneously with the unlawful purchase or sale, sold or bought securities of the same class on the other side of the trade. Damages are capped at the profit gained or loss avoided, and an action must be brought within five years of the last transaction.Exchange Act Section 20A (15 U.S.C. 78t-1)

Under Regulation A, what is the maximum amount a company may raise in a 12-month period in a Tier 2 offering?

• a.$75 million✓
• b.$20 million
• c.$50 million
• d.$10 million

Regulation A Tier 2 allows offerings of up to $75,000,000 in 12 months, with no more than $22.5 million offered by selling security holders who are affiliates. Tier 1 is capped at $20,000,000. The Rule 504 exemption under Regulation D has a separate $10 million cap, which is the usual source of confusion.17 CFR 230.251

A broker-dealer sends a customer the written agreement and risk disclosures required for penny stock transactions. When may the firm first sell the customer a penny stock after sending that agreement?

• a.Immediately, once the customer has said she understands the risks
• b.Not less than two business days after the firm sends the agreement✓
• c.Not less than ten calendar days after the account is opened
• d.Only after the customer has made three prior trades in the account

Rule 15g-9 bars a broker-dealer from selling a penny stock to, or buying one for, a customer's account less than two business days after the firm sends the customer the written agreement to the transaction (and the suitability statement). The firm must also have approved the account for penny stock trading by gathering information on the customer's financial situation, experience and objectives.17 CFR 240.15g-9

A court finds that an employee of a broker-dealer traded on material nonpublic information, and that the firm controlled the employee. What is the maximum civil penalty the firm faces as a controlling person under Section 21A, assuming the profit gained was $200,000?

• a.Exactly $200,000, the profit gained by the employee, with no multiple of the profit applied
• b.The greater of $1,000,000 or three times the profit gained or loss avoided, so $1,000,000✓
• c.Three times the profit, so $600,000, with no minimum dollar amount for the civil penalty
• d.Five times the profit, so $1,000,000, with no separate dollar figure

Under Section 21A the penalty for the person who committed the violation is capped at three times the profit gained or loss avoided, while a controlling person's penalty is capped at the greater of $1,000,000 or three times that amount. With a $200,000 profit, three times is $600,000, which is less than $1,000,000, so the cap is $1,000,000.Exchange Act Section 21A (15 U.S.C. 78u-1)

A company's press release states strong earnings but omits that its largest customer has just cancelled its contract, and investors buy the stock. Under Rule 10b-5, why can the release be unlawful even though every statement in it was literally true?

• a.Rule 10b-5 applies only to statements that are false in every respect, so a half-truth is never covered by it
• b.Rule 10b-5 applies only to statements made by broker-dealers and not to statements made by issuers or their officers
• c.Rule 10b-5 bars omitting a material fact needed to keep the statements made from being misleading✓
• d.Rule 10b-5 applies only to omissions made in a registration statement and never to oral statements to buyers

Rule 10b-5, adopted under Section 10(b) of the Exchange Act, makes it unlawful, in connection with the purchase or sale of any security, to make an untrue statement of a material fact or to omit a material fact necessary to make the statements made not misleading in light of the circumstances. A release that is accurate but leaves out the cancelled contract can mislead, and the rule is not limited to registration statements or broker-dealers.17 CFR 240.10b-5

In the NBER's description of the business cycle, how are expansions and recessions defined?

• a.Expansions run from a peak to a trough, and recessions run from a trough to a peak
• b.Expansions end at a trough, and recessions begin only after two quarters of falling prices
• c.Expansions run from a trough to a peak, and recessions run from a peak to a trough✓
• d.Expansions and recessions are both measured from one peak to the next peak

The NBER Business Cycle Dating Committee treats expansions as the periods between a trough and the following peak, and recessions as the periods between a peak and the following trough. Contraction is the common description of the phase after the peak. A change in prices is inflation or deflation, which does not define a recession.NBER business cycle dating

The Federal Reserve announces that it will conduct open market purchases of Treasury securities to make financial conditions more accommodative. What is the intended effect?

• a.Drain reserves from the banking system in order to slow inflation and cool the economy
• b.Raise the discount rate so that banks borrow less from the Federal Reserve and lend less
• c.Put downward pressure on interest rates to support economic activity and employment✓
• d.Reduce the federal budget deficit directly by retiring outstanding Treasury debt held by banks

Open market operations are the purchase and sale of securities by the central bank; buying securities adds reserves and puts downward pressure on interest rates, which supports activity and job creation. Selling securities does the opposite. Retiring debt is a fiscal-policy matter handled by the Treasury and Congress, not an aim of Fed purchases.Federal Reserve Act; Federal Reserve policy tools

Which measure is the broadest gauge of the value of goods and services produced inside the United States over a period?

• a.The consumer price index
• b.The unemployment rate
• c.The balance of trade
• d.Gross domestic product✓

Gross domestic product measures the value of the final goods and services produced in the United States, and its percentage change shows whether the economy is growing or shrinking. The consumer price index tracks price changes, the unemployment rate tracks labor-market slack, and the balance of trade compares exports and imports only.Bureau of Economic Analysis; GDP

An investor acquires beneficial ownership of 6% of a public company's voting shares. Under Rule 13d-1, within what period must the investor file Schedule 13D?

• a.Within ten calendar days after the acquisition
• b.Before the acquisition that crosses the 5% level takes place
• c.Within five business days after the acquisition✓
• d.Within 45 days after the end of the calendar year

Rule 13d-1(a) requires a person who becomes the beneficial owner of more than 5% of a class of registered voting equity securities to file Schedule 13D with the SEC within five business days after the acquisition. The filing is made after the threshold is crossed, not before it, and it is not deferred to year end.17 CFR 240.13d-1(a)

Which of the following may appear in a "tombstone"-style communication permitted by Rule 134 about a registered offering?

• a.A projection of next year's earnings per share to help investors judge the price
• b.An analyst's opinion on whether the shares are undervalued relative to peers
• c.The title and amount of the securities being offered, the issuer's name and a brief description of its general business✓
• d.A statement that the underwriter expects the shares to trade above the offering price

Rule 134 allows limited factual information such as the issuer's name and location, the title and amount of the securities, a brief description of the general type of business, and price and underwriter details. Projections, valuation opinions and price predictions go beyond that list and could be a misleading offer document.17 CFR 230.134

An issuer files a shelf registration statement under Rule 415. What is the usual limit on how long securities may be offered from the shelf?

• a.One year from the date the registration statement is filed with the SEC, with no renewal permitted
• b.Ninety days from the date of the final prospectus, after which the issuer must file a new statement
• c.Three years from the initial effective date, unless a new registration statement is filed✓
• d.Five years from the date the first tranche is sold, whether or not any more securities are offered

For most shelf offerings Rule 415(a)(5) allows securities to be offered and sold only until three years have elapsed since the initial effective date; before then the issuer may file a new registration statement to continue. A shelf lets an issuer register once and sell in pieces when market conditions are favorable.17 CFR 230.415

The CFO of a listed company buys 5,000 shares in March and sells 5,000 shares of the same stock at a profit in the following July. What is the consequence under Section 16(b) of the Securities Exchange Act of 1934?

• a.No consequence, because Section 16(b) reaches only trades made on inside information
• b.The profit must be repaid only if she held the shares for under 30 days
• c.The profit belongs to the buyers who purchased from her in July
• d.Any profit from the purchase and sale within less than six months is recoverable by the issuer, regardless of intent✓

Section 16(b) is a strict short-swing rule: profit that a director, officer or more-than-10% owner realizes from a purchase and sale, or sale and purchase, within a period of less than six months is recoverable by the issuer, irrespective of intent. March to July is under six months. The rule does not require proof that she used inside information.Exchange Act Section 16(b) (15 U.S.C. 78p(b))

A best-efforts underwriter describes an offering as "all-or-none." Under SEC rules, what must be true for that description to be used?

• a.The underwriter must buy any unsold securities for its own account at the offering price once the period ends
• b.Each purchaser must pay a 20% deposit that the issuer keeps if the offering is withdrawn or fails to close
• c.Investors' money must be promptly refunded unless all of the securities are sold within the specified time✓
• d.The offering may close at any size as long as the issuer receives the proceeds first

Rule 10b-9 bars calling an offering all-or-none unless it is conditioned on prompt refund of the money if all of the securities are not sold at the stated price within the stated time. A guarantee to buy the unsold balance is a firm commitment, not a best-efforts condition. Closing at any size defeats the all-or-none label.17 CFR 240.10b-9

A company's chief executive officer adopts a Rule 10b5-1 trading plan. Which cooling-off period applies before any trade under the plan may occur?

• a.The later of 90 days after adoption or two business days after the company discloses results for the quarter in which the plan was adopted, up to a 120-day maximum✓
• b.No period, because a written plan adopted in good faith is effective immediately
• c.A flat 30 days after adoption, the same as for any other person
• d.The earlier of 30 days after adoption or the next annual meeting

For a director or officer of the issuer, Rule 10b5-1 requires a cooling-off period before trades under the plan, equal to the later of 90 days after adoption or two business days after the company's Form 10-Q or 10-K discloses results for the quarter in which the plan was adopted, subject to a 120-day maximum. A person who is not the issuer or a director or officer has a 30-day period.17 CFR 240.10b5-1(c)(1)(ii)(B)

Which security is exempt from Securities Act registration because of its short maturity?

• a.A corporate note that matures in eighteen months and is secured by receivables
• b.Prime-quality commercial paper with a maturity of not more than nine months when issued✓
• c.A twelve-month certificate of deposit sold by a broker-dealer to retail clients
• d.A corporate debenture with one year left to maturity that was originally a ten-year issue

Section 3(a)(3) exempts notes, drafts, bills of exchange and bankers' acceptances arising from current transactions that have a maturity at issuance of not more than nine months. The test is maturity at issuance, so a long-term bond approaching maturity does not qualify. Longer short-term paper, such as eighteen-month notes, also falls outside the exemption.Securities Act of 1933 Section 3(a)(3)

A brokerage firm that is a SIPC member fails, and a customer has $620,000 in securities and $50,000 in cash at the firm. What is the most SIPC can advance for this customer's claim, assuming the claims are valid?

• a.$250,000
• b.$500,000✓
• c.$670,000
• d.$300,000

SIPC advances to the trustee up to $500,000 per customer, of which no more than $250,000 can be for a claim for cash. A customer with $670,000 in total value is therefore protected up to $500,000, and the remaining value is recovered, if at all, from the estate. SIPC does not insure against market losses.Securities Investor Protection Act Section 9(a)

A company has decided to go public but has not yet filed its registration statement. Under Section 5(c) of the Securities Act, what may its underwriter do?

• a.Make oral offers to institutional clients before the filing, but not written offers to any retail clients
• b.Accept indications of interest and binding orders from clients as long as no money changes hands
• c.Make no offers to sell the security, orally or in writing, until the registration statement is filed✓
• d.Send a written summary prospectus to any client who requests one before the filing is made

Section 5(c) makes it unlawful to offer a security for sale through a prospectus or otherwise until a registration statement has been filed. The waiting period after filing is when oral offers are allowed; sales and binding orders must wait until effectiveness. The quiet pre-filing period covers oral and written offers alike.Securities Act of 1933 Section 5(c)

Which description matches the Federal Reserve's primary credit program at the discount window?

• a.Loans made to individual investors to buy Treasury securities at auction through the Fed
• b.Short-term loans, mostly overnight, to depository institutions in generally sound financial condition✓
• c.Overnight loans that one commercial bank makes to another bank at a negotiated rate of interest, with no Fed role
• d.Emergency loans made to the Treasury when tax receipts fall short of federal spending needs

Primary credit is the main discount window program; an institution that is in generally sound financial condition and has pledged collateral can borrow, usually overnight. The rate charged is the discount rate. Bank-to-bank overnight lending is the federal funds market, which is a different rate, and the Fed does not lend to individual investors through the discount window.Federal Reserve Act; discount window

A private company has $30 million in assets and 600 shareholders of record, of whom 520 are not accredited investors. What must it do under Section 12(g) of the Securities Exchange Act of 1934?

• a.Nothing, because registration is required only when there are 5,000 holders of record
• b.Nothing, because the rule counts only accredited investors
• c.Register only if it plans to list the stock on a national exchange
• d.Register the class of equity with the SEC, because it has assets over $10 million and 500 or more holders who are not accredited investors✓

Section 12(g) requires an issuer to register a class of equity securities when it has total assets above $10 million and the class is held of record by either 2,000 persons or 500 persons who are not accredited investors. This company has assets over $10 million and 520 non-accredited holders, so the 500-holder test is met even though it has fewer than 2,000 holders in total.Exchange Act Section 12(g) (15 U.S.C. 78l(g)); 17 CFR 240.12g-1

A customer has $200,000 in a single account and $600,000 in a joint account with her spouse, both at the same FDIC-insured bank. Which statement is correct about the standard FDIC coverage?

• a.All $800,000 is covered because the customer holds both accounts at one bank
• b.Only $250,000 is covered in total because coverage is per depositor per bank
• c.Coverage applies by ownership category, so the single account is fully covered and the joint account is covered up to $500,000✓
• d.The single account is covered, but the joint account is covered only up to $250,000

FDIC coverage is $250,000 per depositor, per insured bank, for each account ownership category. The single account falls under $250,000, and a joint account is insured up to $250,000 for each co-owner, so $500,000 here and $100,000 of the joint balance is uninsured. Because the categories are separate, the totals are not pooled into one limit.FDIC deposit insurance