Regulation of Securities: SEC Answer Book, 5th Edition (1-year Online Subscription)

List of Questions

Chapter 1
Understanding Securities Regulation

• Federal Securities Laws
• Definition of Security
• Securities Act of 1933
• Securities Act—Liability
• Securities Exchange Act of 1934
• Securities Exchange Act—Liability
• Securities and Exchange Commission
• SEC Rulemaking
• No-Action Letters
• Securities Industry & Self-Regulation
• Securities Industry—SEC Examination
• Security-Based Swap Markets
• Public Company Accounting Oversight Board (PCAOB)

Chapter 2
Going Public

• Introduction
• Pros & Cons of Going Public
• Selecting an Underwriter and Advisors
• Preparing the Registration Statement
• SEC Review and Comment
• Listing on an Exchange
• Blue Sky and FINRA Clearance
• Pre-IPO Communications Restrictions
• Preliminary Prospectus & Free Writing Prospectus
• Marketing the IPO
• Closing the IPO

Chapter 3
Exemptions from Securities Act Registration

• Introduction
• Exempt Securities
• Exempt Transactions Generally
• Intrastate Offering Exemption
• Private Offering Exemption
• Regulation A Exemptions
• Regulation D Exemptions
• Crowdfunding Exemption
• Integration Doctrine
• Resales of Restricted Securities
• PIPE Transactions

Chapter 4
Electronic Filing

• Introduction
• Electronic Filing—Basics
• Hardship Exemptions
• Preparing Electronic Submissions
• Modular Submissions & Segmented Filings
• XBRL
• Interactive Data

Chapter 5
Periodic Reports

• Introducing Exchange Act Reporting
• Integrated Disclosure System
• Disclosure Controls & Procedures
• Annual Report: Form 10-K
• Quarterly Report: Form 10-Q
• Distribution Report: Form 10-D
• Section 302 Certification
• Section 906 Certification
• Accelerated Filing for Larger Companies
• Current Report: Form 8-K
• Transition Report
• Amendments
• Duty to Update
• Confidential Treatment
• Enforcement
• FCPA Accounting Provisions

Chapter 5A
Financial Statements

• Understanding Financial Statements
• GAAP & the FASB
• Balance Sheet
• Income Statement
• Statement of Cash Flows
• Footnotes & MD&A
• Earnings Release & Conference Call
• Earnings Guidance
• Independent Audit
• Audit Report
• Financial Restatement
• SEC Investigation & Enforcement
• Compensation Forfeiture (Clawback)

Chapter 6
Disclosure Items

• Introduction
• Using Plain English
• Non-GAAP Financial Measures—Item 10(e)
• Performance Graph—Item 201(e)
• Management’s Discussion & Analysis—Item 303
• MD&A for Off-Balance Sheet Arrangements—Item 303(a) or (c)
• Changes In & Disagreements With Accountants—Item 304
• Market Risk of Owning Derivatives—Item 305
• Internal Control over Financial Reporting (SOX 404)—Item 308
• Executive Compensation—Item 402
• Security Holdings of Beneficial Owners—Item 403
• Related Person Transactions—Item 404
• Insider Reporting Delinquencies—Item 405
• Code of Ethics—Item 406
• Corporate Governance—Item 407
• Risk Factor Disclosure—Item 503(c)
• Exhibits—Item 601
• Environmental Disclosure
• Cybersecurity
• Corporate Political Spending
• Specialized Corporate Disclosure
• Scaled Disclosure for Smaller Reporting Companies

Chapter 7
Beneficial Ownership Reports: Sections 13(d) & 13(g)

• Overview
• Subject Securities
• Beneficial Ownership
• Acquisition of Securities
• Formation of a Group
• Schedule 13D
• Schedule 13G
• Amendments
• Enforcement

Chapter 8
Insider Reports: Section 16(a)

• Introduction
• How & When to Report
• Electronic Filing & Website Posting
• Joint & Group Reporting
• Enforcement
• Officers and Directors
• Beneficial Owners
• Trusts & Trustees
• Derivative Securities
• Equity Swaps
• Issuer Disclosure of Reporting Delinquencies—Item 405

Chapter 9
Short-Swing Profits: Section 16(b)

• Understanding Section 16(b)
• Six-Month Period
• Purchase & Sale
• Standing to Sue
• Statute of Limitations
• Calculating Profits
• Indemnification or Tax Deduction for Profits Disgorged
• Exemptions
• Short-Selling Prohibition: Section 16(c)
• Insider Trades During Pension Plan Blackouts

Chapter 10
Audit Committee

• Overview
• Administering the Accounting Engagement
• Proxy Statement Disclosure
• Pre-Filing Review of Quarterly Financials
• Auditor Required Communications with Audit Committee
• Financial Expert Disclosure
• Up-the-Ladder Reporting
• False Statements to Accountants or Auditors
• Improper Influence on Conduct of Audits
• Listed Companies’ Audit Committees: Rule 10A-3
• Overseeing the Internal Audit
• Liability
• Whistleblower Protections
• PCAOB Inspections & the Audit Committee

Chapter 11
Executive Compensation

• Introduction
• Compensation Committee
• Say-on-Pay Vote
• Say-on-Frequency Vote
• Golden Parachute Vote
• Pay vs. Performance
• Pay Ratio Disclosure
• Hedging by Employees & Directors
• Compensation Clawbacks
• Compensation Restrictions for Covered Financial Institutions
• Broker Discretionary Voting

Chapter 12
Proxies

• Understanding Proxy Regulation
• Proxy Defined
• Solicitation Defined
• Exempt Solicitations
• Proxy Statement—Schedule 14A
• Information Statement—Schedule 14C
• Proxy Card
• Annual Report to Security Holders
• Filing Proxy Materials with the SEC
• Delivering Proxy Materials to Shareholders
• Shareholder List
• Proxy Access
• Solicitation Before Furnishing Proxy Statement
• Auditor Independence Disclosure
• Shareholder Communications with Directors
• Proxy Advisors
• Antifraud

Chapter 13
Shareholder Proposals

• Introduction
• Eligibility to Submit a Proposal
• Procedure for Submitting a Proposal
• Substantive Grounds for Excluding a Proposal
• Procedure for Excluding a Proposal
• Enforcement

Chapter 14
Tender Offers

• Overview
• Tender Offer Defined
• Commencement
• Early Commencement for Exchange Offers
• Pre-Commencement Communications
• Preparing & Filing Schedule TO
• Disseminating Schedule TO Information to Security Holders
• Security Holder Protections
• Subsequent Offering Period
• All Holders/Best Price Rules
• Disclosure by the Target—Schedule 14D-9
• Issuer Repurchases & Tender Offers
• Antifraud
• Inside Information
• Cross-Border Transactions
• Mini-Tender Offers
• Five Business Day Debt Tender Offers
• State Regulation

Chapter 15
Going Private: Rule 13e-3

• Overview
• Sarbanes-Oxley & Going Private
• Scope of Rule 13e-3
• Subject Persons
• Exceptions to Rule 13e-3
• Schedule 13E-3
• Fairness Disclosure
• Disclosure to Security Holders
• Dissemination
• Liability

Chapter 16
Resales of Restricted Securities: Rule 144

• Understanding Rule 144
• Affiliate
• Person
• Restricted Securities
• Debt Securities
• Conditions to be Met
• Current Public Information
• Holding Period for Restricted Securities
• Limitation on Amount of Securities Sold
• Manner of Sale
• Form 144—Notice of Proposed Sale
• Securities of Shell Companies
• Rule 145—Business Combination Transactions

Chapter 17
Resales to Institutional Investors: Rule 144A

• Introducing Rule 144A
• Interaction with Other Exemptions
• Eligible Securities
• Eligible Buyers
• Information Requirement
• Notice to Buyer
• Liability
• Relation to State Law
• PORTAL Market
• Rule 144A Equity Offerings

Chapter 18
Corporate Website

• Overview
• Format & Readability
• Document Delivery
• Access Equals Delivery
• Proxy Materials
• Regulation FD Considerations
• Electronic Shareholder Forums
• Offshore Transactions
• Website Interactive Data
• Liability

Chapter 19
Securities Fraud

• Understanding Rule 10b-5
• Materiality
• Scienter
• In Connection with Purchase or Sale
• Presumptions of Reliance
• Loss Causation & Economic Loss
• Statute of Limitations
• Multiple Defendants
• Contribution & Indemnification
• Forward-Looking Statements
• Stock Buybacks—Rule 10b-18
• Liability for Analysts’ Statements
• Selective Disclosure—Regulation FD
• Regulation FD Enforcement
• Non-GAAP Financial Measures—Regulation G

Chapter 20
Insider Trading

• Overview
• Material Nonpublic Information
• Classical Theory
• Misappropriation Theory
• Tipper & Tippee Liability
• Rule 10b5-1(c) Trading Plans
• High-Frequency Trading
• Enforcement
• Penalties
• Insider Trading by Federal Officials

Chapter 21
Whistleblower Awards

• Overview
• Definitions
• Award Payment
• Eligibility
• Submitting Original Information
• Confidentiality of Submissions
• Claiming an Award
• Appeals
• Anti-Retaliation Protection
• Acts That Impede Whistleblowing

Chapter 22
Securities Litigation & Enforcement

• Introduction
• SEC Investigations
• Wells Process
• Cooperating with the SEC
• SEC Administrative Proceedings
• SEC Injunctive Actions in Federal Court
• Criminal Prosecution
• Corporate Criminal Liability
• Corporate Compliance Program
• Asserting the Fifth Amendment
• Search & Seizure
• Derivative Actions
• Securities Class Actions
• Shareholder Litigation Involving Mergers & Acquisitions
• SEC as Defendant

Chapter 23
Broker-Dealers

• Introduction
• Definitions of Broker/Dealer
• SEC Registration
• Forms BD & BDW
• FINRA Membership
• SIPC Membership
• State Requirements
• Financial Responsibility
• Duty to Supervise
• Antifraud
• Anti-Money Laundering
• Market Manipulation
• Large Traders
• Examination
• Discipline
• Arbitration

Chapter 24
Investment Advisers

• Introduction
• Definition of Investment Adviser
• Family Office
• Registration
• Exemptions from Registration
• Form ADV
• Antifraud
• Fiduciary Duty
• Performance Compensation
• Supervision, Compliance & Recordkeeping
• Anti-Money Laundering
• Form PF
• Examination & Enforcement
• Municipal Advisors

Table of Cases

Index