SIE Regulations Latest Update Graded A
What is the main purpose of the Securities Act of 1933? The Securities Act of 1933 aims to
oversee the initial sale of securities, requiring companies to submit a registration statement to the
SEC before issuing new stocks.
Which act created the SEC an...
1 SIE Regulations Latest Update Graded A What is the main purpose of the Securities Act of 1933? ✔✔The Securities Act of 1933 aims to oversee the initial sale of securities, requi ring companies to submit a registration statement to the SEC before issuing new stocks. Which act created the SEC and regulates the trading of securities in the secondary market? ✔✔The Securities Exchange Act of 1934 established the SEC and governs second ary market trading. Which types of securities fall under the regulations of the Securities Act of 1933? ✔✔The act applies to securities that are not exempt from registration requirements. What steps must be completed before securities can be sold under t he Securities Act of 1933? ✔✔A company must file a prospectus and registration statement with the SEC, followed by a 20 -
day waiting period. What occurs during the 20 -day waiting period required by the Securities Act of 1933? ✔✔During this period, companie s must ensure full and accurate disclosure. Securities cannot be sold, but preliminary prospectuses can be distributed to gauge interest. 2 What actions are taken after the 20 -day waiting period ends under the Securities Act of 1933? ✔✔Once the period ends, the company must meet all regulatory requirements, the registration becomes effective, and the securities can be sold. What is the "effective date" concerning securities issuance? ✔✔It is the date when the securities can legally be sold. Does the SEC approve or disapprove securities issues? ✔✔The SEC does not approve or disapprove of securities issues; it only ensures that all required information is disclosed. What is the required delivery period for a prospectus for primary non -NASDAQ/n on-exchange listed issues? ✔✔90 days. What is the required delivery period for a prospectus for secondary non -NASDAQ/non -exchange listed issues? ✔✔40 days. What is the required delivery period for a prospectus for exchange -listed and NASDAQ issues? ✔✔25 days. 3 When must a prospectus be given to an investor? ✔✔A prospectus must be delivered at or before the confirmation of the sale. Is electronic delivery of prospectuses allowed? ✔✔Yes, provided the firm ensures that the investor can access the prospectus . What is considered fraud under the Securities Act of 1933? ✔✔Omitting or misstating material facts is considered fraud. What does "due diligence" entail in the context of securities offerings? ✔✔Ensuring that all disclosures are complete and truthful. What is Regulation A, and how does it help companies? ✔✔Regulation A allows companies to raise up to $5 million in capital without a full registration process, simplifying fundraising for startups. allows issuer to "test the waters" - CAN give out promotional material.... (this is against the rules for regular registered issues) 4 Rule 415 (Shelf Registration) ✔✔lets issuers register additional shares without having to go through the 20 day cooling off period registration is good for 3 years issuer gives a 2 day notice to the SEC can sell with a supplement to the original prospectus requirement is that the original issues hav e to be outstanding for at least 1 year and a minimum of $75MM (75 million) Who/What is EXEMPT from Securities Act of 1933? ✔✔Gov't Gov't agencies Munis Foreign Gov Obligations Also: bank issues insurance company offerings common carrier issues
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