Quiz Understanding the Financial Planning Certification Exam Part 1 Lesson 13
Quiz Understanding the Financial Planning Certification Exam Part 1 Lesson 13
1. What is the primary focus of the Securities and Exchange Act of 1934?
A) Initial public offerings
B) Secondary trading of securities
C) Disclosure requirements for new companies
D) Market volatility prevention
2. When was the Securities and Exchange Act of 1934 established?
A) 1929
B) 1933
C) 1934
D) 1940
3. What organization did the Securities and Exchange Act of 1934 establish?
A) Federal Reserve Board
B) Securities and Exchange Commission (SEC)
C) Financial Industry Regulatory Authority (FINRA)
D) National Securities Association (NSA)
4. Which securities are exempt from the regulations of the Securities and Exchange Act of 1934?
A) Municipal bonds
B) Government bonds
C) Private placements
D) All of the above
5. What practice is strongly prohibited by the Securities and Exchange Act of 1934?
A) Short selling
B) Insider trading
C) Proxy voting
D) Stock dividends
6. Who are considered insiders under the Securities and Exchange Act of 1934?
A) Only officers and directors
B) Officers, directors, and 10% stockholders
C) Only officers
D) Only directors
7. What is the penalty for insider trading under the Securities and Exchange Act of 1934?
A) $1,000 fine
B) Community service
C) Up to $5,000,000 fine and 20 years in jail
D) Verbal warning
8. What is the purpose of proxy statements regulated by the Act?
A) To provide financial statements to shareholders
B) To facilitate stock trading
C) To notify shareholders about meetings and voting matters
D) To disclose insider trading activities
9. What is required for brokers and dealers under the Securities and Exchange Act of 1934?
A) SEC registration
B) Minimum net capital maintenance
C) Segregation of customer securities
D) All of the above
10. Which of the following is a prohibited transaction under the Act?
A) Wash trading
B) Margin trading
C) Dividend reinvestment
D) Dollar-cost averaging
11. What organization did the Securities and Exchange Act of 1934 establish?
A) Federal Reserve Board
B) Securities and Exchange Commission (SEC)
C) Financial Industry Regulatory Authority (FINRA)
D) National Securities Association (NSA)
12. What is the penalty for insider trading under the Securities and Exchange Act of 1934?
A) $1,000 fine
B) Community service
C) Up to $5,000,000 fine and 20 years in jail
D) Verbal warning
13. What is the purpose of proxy statements regulated by the Act?
A) To provide financial statements to shareholders
B) To facilitate stock trading
C) To notify shareholders about meetings and voting matters
D) To disclose insider trading activities
14. What is required for brokers and dealers under the Securities and Exchange Act of 1934?
A) SEC registration
B) Minimum net capital maintenance
C) Segregation of customer securities
D) All of the above
15. Which of the following is a prohibited transaction under the Act?
A) Wash trading
B) Margin trading
C) Dividend reinvestment
D) Dollar-cost averaging
16. Who are considered insiders under the Securities and Exchange Act of 1934?
A) Only officers and directors
B) Officers, directors, and 10% stockholders
C) Only officers
D) Only directors
17. What is the primary focus of the Securities and Exchange Act of 1934?
A) Initial public offerings
B) Secondary trading of securities
C) Disclosure requirements for new companies
D) Market volatility prevention
18. What organization did the Securities and Exchange Act of 1934 establish?
A) Federal Reserve Board
B) Securities and Exchange Commission (SEC)
C) Financial Industry Regulatory Authority (FINRA)
D) National Securities Association (NSA)
19. What practice is strongly prohibited by the Securities and Exchange Act of 1934?
A) Short selling
B) Insider trading
C) Proxy voting
D) Stock dividends
20. When was the Securities and Exchange Act of 1934 established?
A) 1929
B) 1933
C) 1934
D) 1940
Answer Key:
1 B) Secondary trading of securities
2 C) 1934
3 B) Securities and Exchange Commission (SEC)
4 D) All of the above
5 B) Insider trading
6 B) Officers, directors, and 10% stockholders
7 C) Up to $5,000,000 fine and 20 years in jail
8 C) To notify shareholders about meetings and voting matters
9 D) All of the above
10 A) Wash trading
11 B) Securities and Exchange Commission (SEC)
12 C) Up to $5,000,000 fine and 20 years in jail
13 C) To notify shareholders about meetings and voting matters
14 D) All of the above
15 A) Wash trading
16 B) Officers, directors, and 10% stockholders
17 B) Secondary trading of securities
18 B) Securities and Exchange Commission (SEC)
19 B) Insider trading
20 C) 1934
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