Chapter 6 Practice Questions

1. 1. The primary purpose of the Securities Exchange Act of 1934 was to regulate:
2. A. Issuers of securities
3. B. Investment companies
4. C. Broker-dealers, agents, and the exchanges
5. D. Investment advisers
6. 2. All of the following would be exempt from registration under the Investment Advisers Act of 1940 except:
7. A. Broker-dealer charging a fee for investment advice
8. B. Publisher charging a fee to write a column about investments
9. C. Lawyer giving investment advice as part of his oversight of a client’s estate
10. D. Teacher paid for instructing students on the proper way to construct a portfolio
11. 3. Under the Investment Advisers Act of 1940, advisers must register if all of the following are true except:
12. A. They provide investment advice.
13. B. They are in the business of providing advice.
14. C. They are compensated for giving investment advice.
15. D. They buy and sell securities.
16. 4. Bond investors are protected by what piece of legislation?
17. A. The Securities Exchange Act
18. B. The Trust Indenture Act