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36 Cards in this Set
- Front
- Back
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represents a corporation's first public attempt to attract capital from financial institutions and the general public
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initial public offering - IPO
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provides a system for the trading of financial instruments between investors
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secondary market
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the first federal regulation of securities markets
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the securities act of 1933
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the goal of this act is to insure that investors are provided with the information needed to make informed investment decisions and also provides specific rules for the conduct of issuers and investment bankers that are hired to advise on the sale and marketing of securities
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the securities act of 1933
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this act covers the secondary markets and exchanges and created the securities and exchange commission, giving it preeminent regulatory authority in he area of domestic securities dealings in both the primary and secondary markets. also, gives regulatory oversight regarding the extension of credit in the securities industry to the federal reserve board
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the securities exchange act of 1934
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the NYSE, the NASD, and the MSRB are classified as:
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self regulatory organizations - SROs
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this act enabled the creation of non-exchange SROs such that the OTC market could be regulated
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the maloney act of 1938
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created in 1939, acts as the SRO for the OTC market
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the national association of securities dealers - NASD
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the scope of this act paved the way for the municipal securities rulemaking board (MSRB), created in 1975
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the maloney act of 1938
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this act provided added security for bond investors, requiring an agreement between the issuing corporation and a trustee who would act for the owners of the bonds in case of the corporation's liquidation
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the trust indenture act of 1939
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this act covers companies that are formed to pool investors' money
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the investment company act of 1940
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this act regulates firms that sell investment advice for a fee
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the investment advisers act of 1940
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this act enabled the creation of industry-funded insurance which covers the customers of brokerage firms in cases where a firm becomes insolvent
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the securities investor protection act of 1970 - SIPC
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this act covers the administration of private qualified retirement accounts such as the popular 401(k) plan. provides for the funding, vesting, and other aspects of such plans as well as fiduciary responsibilities of pension fund trustees
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the employee retirement income safety act of 1974 - ERISA
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this created the MSRB
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the securities acts amendments of 1975
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the SRO for firms that transact business in municipal securities. it has no enforcement arm, but nonetheless writes the rules and regulations that are in turn enforced by other regulatory entities
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municipal securities rulemaking board - MSRB
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this act was a response to the scandals of the 1980s which involved the sharing and use of nonpublic information
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the insider trading act of 1988
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although this practice was prohibited by the acts of 33 and 34, there were no specific penalties prescribed. this act sets out the penalties for insider trading
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the insider trading act of 1988
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this act was passed in response to consumer complaints concerning the practice of cold calling. requires that any person who calls prospects for profit must maintain a do-not-call list
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the federal telephone consumer protection act of 1991
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this act covers the selling of certain low-priced securities to potential new customers
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the penny stock rule of 1991
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these are defined as non-exchange traded and non-nasdaq listed securities that trade for less than $5 a share
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penny stocks
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since penny stocks are highly volatile and present much risk to investors, this act requires that a firm have a signed disclosure document from potential buyers stating that the investor understands the risks involved
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the penny stock rule of 1991
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describes the NASD's disciplinary process against member firms and their associated persons
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the NASD code of procedure
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concerned with the settlement of disputes through arbitration
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the NASD code of arbitration
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defined as any material used in newspapers, radio, magazines, television, telephone recordings, motion pictures, or other public media
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advertisements
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includes notices, circulars, research reports, form letters, and reprints of published articles
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sales literature
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account type when a registered representative is the authorized third party with trading authority
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discretionary account
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when securities are registered and held in the name of the brokerage firm as nominee
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street name securities
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when securities of a broker-dealer are mixed with those of customers
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commingling
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this SEC regulation requires that all broker-dealers, investment companies, and investment advisers registered with the SEC adopt policies and procedures reasonable designed to protect the privacy of the confidential information that they collect from their clients
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regulation S-P
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a client who has an ongoing relationship with the firm
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customer
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a potential client who is providing information to the firm in connection with a potential transaction
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consumer
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if a firm discloses any nonpublic personal information to any nonaffiliated third party, it must provide every consumer a
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privacy notice
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broker dealers are required to file ____ for all cash or cash equivalent transactions that exceed $10,000 in a given day
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currency transaction reports - CTRs
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broker dealers are required to file ____ whenever anyone physically transports or receives cash in an amount of more than $10,000 in our out of the United States
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monetary instrument transportation reports - CMIRs
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broker dealers are required to file _____ whenever a transaction or group of transactions exceeds $5,000 and the firm suspects violations of federal criminal laws or is related to illegal activity or cannot find any legitimate purpose for the transactions
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suspicious activity reports - SARs
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