Chapter 6 Practice Questions
1. The primary purpose of the Securities Exchange Act of 1934 was to regulate:
A. Issuers of securities
B. Investment companies
C. Broker-dealers, agents, and the exchanges
D. Investment advisers
2. All of the following would be exempt from registration under the Investment Advisers Act of 1940 except:
A. Broker-dealer charging a fee for investment advice
B. Publisher charging a fee to write a column about investments
C. Lawyer giving investment advice as part of his oversight of a client’s estate
D. Teacher paid for instructing students on the proper way to construct a portfolio
3. Under the Investment Advisers Act of 1940, a firm must register as an investment adviser if all of the following are true except:
A. It provides investment advice.
B. It is in the business of providing advice.
C. It is compensated for giving investment advi