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 advice.
D. It buys and sells securities.
4. Bond investors are protected by what piece of legislation?
A. The Securities Exchange Act
B. The Trust Indenture Act
C. The Investment Company Act
D. The