Under the Securities Act of 1933, which of the following would be considered a prospectus?

Under the Securities Act of 1933, which of the following would be considered a prospectus?

I. Tombstone advertisement.
II. Television advertisement that makes full disclosure of all material facts.
III. Offer communicated over the telephone.


A) II only.
B) I and II.
C) I and III.
D) III only.


Answer: A) II only- Television advertisement that makes full disclosure of all material facts.

Under the Securities Act of 1933, which of the following is NOT a security?

Under the Securities Act of 1933, which of the following is NOT a security?

A) A stock right.
B) Convertible stock.
C) A fixed life insurance contract.
D) A stock warrant.


Answer: C) A fixed life insurance contract.

Which of the following are NOT exempt from the antifraud provisions of the Securities Act of 1933?

Which of the following are NOT exempt from the antifraud provisions of the Securities Act of 1933?

U.S. government securities.
Investment contracts issued by employee benefit plans.
Securities issued by federal banks.


A) I and III.
B) II and III.
C) I, II and III.
D) I and II.


Answer: C) I, II and III.

Under the Securities Act of 1933, which of the following does not meet the definition of a prospectus?

Under the Securities Act of 1933, which of the following does not meet the definition of a prospectus?

A) An advertisement in a newspaper describing the benefits of a certain mutual fund
B) A telephone call from ​an agent of a broker​-dealer​ to a client advising the purchase of a security
C) A publicity release that describes a security
D) A newsletter from a brokerage firm announcing the availability of a security


Answer: B) A telephone call from ​an agent of a broker​-dealer​ to a client advising the purchase of a security

Under the Securities Act of 1933, the definition of an issuer would include:

Under the Securities Act of 1933, the definition of an issuer would include:

I. a government entity issuing exempt securities.
II. a corporation issuing securities in an exempt transaction.
III. an antique dealer selling items from a collection of rare books.


A) I, II and III.
B) I and II.
C) II and III.
D) III only.


Answer: B) I and II.

Under the Securities Act of 1933, the definition of a prospectus includes:

Under the Securities Act of 1933, the definition of a prospectus includes:

an offer of a security made orally.
a tombstone advertisement for a security.
an offer of a security made in a personal letter.


A) I and III.
B) II and III.
C) I, II and III.


Answer: D) III only.
D) III only-an offer of a security made in a personal letter.

Which of the following does NOT have a federally imposed exemption from registration with the SEC?

Which of the following does NOT have a federally imposed exemption from registration with the SEC?

A) Securities issued or guaranteed by a state or political subdivision of a state.
B) Commercial paper with maturities of 9 months or less where the proceeds are not used for capital expenditures.
C) Shares of bank holding companies traded on the New York Stock Exchange.
D) Securities issued or guaranteed by the U.S. government.


Answer: C) Shares of bank holding companies traded on the New York Stock Exchange.

Which of the following securities issues must be registered with the SEC under the Securities Act of 1933?

Which of the following securities issues must be registered with the SEC under the Securities Act of 1933?

Publicly traded DPPs.
Variable annuities.
Open-end funds.
Closed-end funds.


A) I, II, III and IV.
B) I and II.
C) II and III.
D) III and IV.


Answer: A) I, II, III and IV.

All of the following must be sold with prospectus EXCEPT:

All of the following must be sold with prospectus EXCEPT:

A) an open-end common stock fund.
B) an open-end U.S. government bond fund.
C) a primary offering of a closed-end fund.
D) a closed-end fund in the secondary market.


Answer: D) a closed-end fund in the secondary market

Which of the following are characteristics of the Securities Act of 1933?

Which of the following are characteristics of the Securities Act of 1933?

I. Requires registration of exchanges.
II. Called the Truth in Securities Act.
III. Requires full and fair disclosure of material facts.
IV. Enabled the Federal Reserve Board to determine margin requirements.

A) II and IV.
B) II and III.
C) I and II.
D) I and III.


Answer: B) II and III.
II. Called the Truth in Securities Act.
III. Requires full and fair disclosure of material facts.