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36 Cards in this Set

  • Front
  • Back
represents a corporation's first public attempt to attract capital from financial institutions and the general public
initial public offering - IPO
provides a system for the trading of financial instruments between investors
secondary market
the first federal regulation of securities markets
the securities act of 1933
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
the securities act of 1933
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
the securities exchange act of 1934
the NYSE, the NASD, and the MSRB are classified as:
self regulatory organizations - SROs
this act enabled the creation of non-exchange SROs such that the OTC market could be regulated
the maloney act of 1938
created in 1939, acts as the SRO for the OTC market
the national association of securities dealers - NASD
the scope of this act paved the way for the municipal securities rulemaking board (MSRB), created in 1975
the maloney act of 1938
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
the trust indenture act of 1939
this act covers companies that are formed to pool investors' money
the investment company act of 1940
this act regulates firms that sell investment advice for a fee
the investment advisers act of 1940
this act enabled the creation of industry-funded insurance which covers the customers of brokerage firms in cases where a firm becomes insolvent
the securities investor protection act of 1970 - SIPC
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
the employee retirement income safety act of 1974 - ERISA
this created the MSRB
the securities acts amendments of 1975
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
municipal securities rulemaking board - MSRB
this act was a response to the scandals of the 1980s which involved the sharing and use of nonpublic information
the insider trading act of 1988
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
the insider trading act of 1988
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
the federal telephone consumer protection act of 1991
this act covers the selling of certain low-priced securities to potential new customers
the penny stock rule of 1991
these are defined as non-exchange traded and non-nasdaq listed securities that trade for less than $5 a share
penny stocks
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
the penny stock rule of 1991
describes the NASD's disciplinary process against member firms and their associated persons
the NASD code of procedure
concerned with the settlement of disputes through arbitration
the NASD code of arbitration
defined as any material used in newspapers, radio, magazines, television, telephone recordings, motion pictures, or other public media
includes notices, circulars, research reports, form letters, and reprints of published articles
sales literature
account type when a registered representative is the authorized third party with trading authority
discretionary account
when securities are registered and held in the name of the brokerage firm as nominee
street name securities
when securities of a broker-dealer are mixed with those of customers
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
regulation S-P
a client who has an ongoing relationship with the firm
a potential client who is providing information to the firm in connection with a potential transaction
if a firm discloses any nonpublic personal information to any nonaffiliated third party, it must provide every consumer a
privacy notice
broker dealers are required to file ____ for all cash or cash equivalent transactions that exceed $10,000 in a given day
currency transaction reports - CTRs
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
monetary instrument transportation reports - CMIRs
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
suspicious activity reports - SARs