The Law Of Corporations And Other Business Organizations 6th Edition By Angela – Test Bank

CHAPTER 11
Public Corporations and Securities Regulations
MULTIPLE CHOICE
1. State laws regulating securities are often referred to as
A. the 1933 State Securities Act.
B. blue sky laws.
C. red herring laws.
D. the 1934 State Securities Exchange Act.
ANS: B
2. A(n) ________ is a securities market that is not
represented by an actual physical location, but
rather by transactions that take place through a
series of computer networks between brokerdealers.
A. securities exchange
B. securities network
C. broker-dealer network
D. over-the-counter market
ANS: D
3. ________ is/are not considered to be a security
under the Securities and Exchange Act of 1933.
A. Powers of attorney
B. Common stock
C. Preferred stock
D. Bonds
ANS: A
4. The self-regulating association formed to
regulate over-the-counter markets is referred
to as the
A. National Association of Securities Dealers.
B. Securities and Exchange Commission.
C. OTC Regulation Agency.
D. National Broker and Dealer Association.
ANS: A
5. The most significant provisions of Section 5 of
the Securities Act of 1933
A. establish the Securities and Exchange
Commission (SEC) and give it the authority
to act to prevent securities fraud.
B. provide for the regulation of the sale of securities by the SEC and state agencies.

C. require the registration of securities and
the use of prospectuses for the sale of
registered securities.
D. regulate the securities exchanges and overthe-counter markets.
ANS: C
6. The registration statement that must commonly
be filed under the Securities Act of 1933 is the
A. Form S-1.
B. Form A.
C. Form 10-1.
D. Form 10-K.
ANS: A
7. The document that must be furnished to a prospective purchaser of registered securities is referred to as the
A. Form S-1.
B. prospectus.
C. registration statement.
D. securities disclosure statement.
ANS: B
8. ________ is the electronic system for filing
documents with the Securities and Exchange
Commission.
A. EAGER
B. The SEC Electronic Filing System
C. EDGAR
D. Prospectus
ANS: C
9. The ________ trades the largest volume of
stock, and is generally considered to be the
most prestigious stock exchange.
A. New York Stock Exchange
B. American Stock Exchange
C. Chicago Board of Trade
D. United Stock Exchange
ANS: A
10. Certain corporations considered accelerated filers must file their 10-K
A. before the end of their fiscal year.
B. within 120 days after the close of their fiscal year.
C. within six months of the close of their fiscal
year.
D. within 60 days after the close of their fiscal
year.
ANS: D