SEC Phase 1 case studies
SEC Phase 1 · Put your knowledge to work in context.
SEC Phase 1 is a study designation for candidates preparing to work with Nigeria's Securities and Exchange Commission (SEC Nigeria) regulatory framework. Independent study platforms use this label to organize exam preparation around the four knowledge areas the SEC publishes on sec.gov.ng: Regulation; Rules and Regulations; Codes of Conduct; and Guidelines and Policies. The SEC Phase 1 case studies are 5 cases and about 2,018 words.
1Private CFO Call and a One-Line Message
on a Tuesday, an equity research analyst at a mid-sized broker-dealer joined an invitation-only call with the CFO of XYZ Corp. The CFO said preliminary Q3 revenue was tracking at 48 million, below the 52 million consensus, and added: 'This stays with you until we file the 8-K.' At 10:31 a.m., the analyst sent a one-line message to a sales trader: 'Check your numbers on XYZ.' By 11:05 a.m., the sales trader had bought 200 put contracts in his personal account and told a long-standing institutional client that 'XYZ may miss.' XYZ released earnings two days later; the stock fell 9%.
527 words, about 3 min2Large Visible Orders, Fast Cancels, Opposite-Side Fills
Over three weeks, a proprietary trader at a broker-dealer entered 1,200 large visible orders on the bid for a small-cap stock, canceled 97% of them within 200 milliseconds, and simultaneously executed 150 smaller buy orders on the offer. The pattern appears in the firm's automated surveillance report.
408 words, about 2 min3Family Dinner and a Confidential M&A Mandate
An investment banking analyst is staffed on a confidential sell-side M&A mandate for PharmaCo. The analyst's brother-in-law is a portfolio manager at a hedge fund that holds 300,000 PharmaCo shares.
392 words, about 2 min4Auto-Approved Account, Shell Company Wire, and Penny Stocks
A retail broker's onboarding system auto-approved a new margin account for a client who deposited 250,000 by wire from a shell company incorporated in a jurisdiction the firm's policy lists as high risk. The client provided a passport and a utility bill; the bill was eight months old, and the address did not match the passport.
342 words, about 2 min5Model Portfolios, Flat Fees, and the Publisher Exclusion
A firm publishes model portfolios on its website and charges 150 retail clients a flat monthly fee of 99. The firm has 40 million in assets under advisement, no personalized advice, and says it is a 'publisher' protected by the publisher exclusion.
349 words, about 2 min