About This Chapter
New Issue Regulations in the Securities Industry - Chapter Summary
Get up to speed on new issue regulations in the securities industry with these lessons. You'll examine definitions and explanations of Regulation D, Regulation A, SEC Regulation C, and SEC Regulation M. You'll also review SEC regulations concerning foreign securities and the intrastate offerings and securities transactions that are exempt from registration. Additionally, by the end of this chapter you will be able to:
- Explain the regulations and requirements for private placements and resales
- Understand the rules governing networking arrangements between members and financial institutions, as well as those governing the tape recording of registered persons by certain firms
- Describe the FINRA rules for selling agreement disclosures and notification requirements
- Explain the FINRA rules for public offerings
- Discuss manipulative and deceptive devices by brokers or dealers
- Give the definition and purpose of the Trust Indenture Act of 1939
- List the MSRB rules related to municipal securities and primary offerings
This chapter is packed with rules, regulations, and laws. That's why our professional instructors have worked so hard to break it down into simple, easy-to-follow lessons that will help you retain maximum information. Use the questions on the self-assessment at the end of each lesson to monitor your progress. If you need to go back to review, that's okay - that's why all of our courses are self-paced.
1. Regulation D Offerings: Definition & Regulations
Securities and Exchange Commission (SEC ) Regulation D is the section of the Securities Act of 1933 that governs raising capital with unregistered (private) securities. In this lesson you will learn the important aspects of Regulation D and how it is used to fund businesses and investments.
2. Regulation A Offerings: Definition & Qualification Requirements
This lesson offers an overview of SEC registration requirements for a public offering. We then go into more detail about the two exceptions to this rule under Regulation A. An example scenario is also included for better context and understanding.
3. SEC Regulation C: Definition & Requirements
Regulation C of the Securities Act of 1933 focuses on the requirements of a prospectus. A prospectus is an official document detailing public offerings and regulated by Rules 415, 427, 430A, 430B, and 433.
4. SEC Regulation M: Definition & Overview
This lesson gives a broad overview and definition of Regulation M and the rules therein. These rules are used to prevent market manipulation of a security offering.
5. Foreign Securities: Definition & SEC Regulations
In this lesson, you will learn about nonregistered foreign securities sold to QIB in the U.S. These are foreign securities that are prohibited from being sold to the U.S. investors. It will also cover Regulations S under the Securities Act of 1933.
6. Intrastate Offerings & Securities Transactions Exempted From Registration
The Securities Act of 1933 protects investors from misleading advertising and requires securities to be registered with the SEC. Intrastate companies are exempt from SEC registration, if regulations are followed.
7. Private Placements & Resales: Regulations & Requirements
Private placement is a way of raising capital through selling common stock without complying with all the regulations required for an initial public offering or selling stock to the general public.
8. Rules Governing Networking Arrangements Between Members & Financial Institutions
This lesson explains the provisions of FINRA Rule 3160 regarding networking arrangements between broker-dealers and financial institutions. The five sections of Rule 3160 will be elaborated upon.
9. FINRA Rules for Public Offerings
The Financial Industry Regulatory Authority (FINRA) makes rules concerning broker-dealer behavior. This lesson discusses rules pertaining to the role of broker-dealers in public offerings.
10. FINRA Rules for Selling Agreement Disclosures & Notification Requirements
This lesson defines the purpose of the Financial Industry Regulation Authority (FINRA) and provides an overview of the FINRA Rules related to selling agreement disclosures and notification requirements.
11. Manipulative & Deceptive Devices by Brokers or Dealers
The Securities Exchange Act of 1934 was enacted primarily to reduce fraud in the securities industry. During this lesson we will review part of the act, which discusses manipulative, deceptive, and fraudulent practices that are prohibited.
12. Trust Indenture Act of 1939: Definition & Purpose
The Trust Indenture Act of 1939 is a follow-up bill to the Securities Exchange Act of 1933. It addresses the need to set trust indentures for every public offering of bonds, notes and debentures of over $5 million.
13. MSRB Rules Related to Municipal Securities
The Municipal Securities Rule Board (MSRB) is the agency tasked with overseeing the markets for the sale of municipal bonds and securities. This lesson discusses MSRB Rules G-28 & G-38.
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Other chapters within the Series 7 Exam: Study Guide & Practice course
- Advertising & Public Communication in the Securities Industry
- The New Issues Market
- Brokerage Account Types & Restrictions
- Retirement Plans & Tax-Advantaged Accounts
- Handling Customer Investment Information & Discretionary Accounts
- Obtaining Supervisory Approvals for Investment Accounts
- Analyzing Customer Investment Profiles
- Analyzing Customer Financial Statements
- Understanding Equity Securities
- Tax Treatment of Equity Securities Transactions
- Packaged Investment Products
- Variable Life Insurance & Annuities
- Real Estate Investment Trusts
- Direct Participation Programs
- Understanding Options in Investing
- Debt Securities
- Investing in Corporate Bonds
- Municipal Securities
- Municipal Securities Analysis & Regulations
- Registered Hedge Funds
- Asset-Backed Securities
- U.S. Government Agency Securities
- Investment Product Disclosures
- Customer Updates & Record Retention
- Customer Transactions & Confirmations
- Transactional Delivery Obligations & Settlement Procedures
- Investment Disputes & Customer Complaints
- Addressing Margin Issues