Question 1

Which of the following is the term for the document referenced by Marc to be provided to the SEC that will be used as an advertising tool to potential investors who can rely on it to decide whether they should buy securities?

Accepted Answer

A)  An advertising statement
B)  A securities advertisement
C)  A prospectus
D)  An inventory
E)  A proposed income statementF) A) and E)
G) All of the above

Question 2

________ is the period that begins when an issuer starts to think about issuing securities and ends when the issuer files the registration statement and prospectus with the SEC.

Accepted Answer

A)  The required filing period
B)  The initial filing period
C)  The waiting period
D)  The beginning filing period
E)  The prefiling periodF) A) and C)
G) B) and D)

Question 3

Which of the following is not considered an accredited investor?

Accepted Answer

A)  Any natural person who has a net worth of at least $500,000.
B)  Any natural person whose annual income has been at least $200,000 for the two previous years and expects to make at least $200,000 in the current year.
C)  Colleges and universities.
D)  Insiders of the issuers,such as executive officers or directors.
E)  Any corporation or partnership with total assets in excess of $5 million.F) B) and D)
G) D) and E)

Question 4

Government did not regulate securities prior to the Great Depression,and fraudulent transactions were common.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following permits the SEC to seek punishment of violators of foreign securities laws?

Accepted Answer

A)  The Securities Enforcement Remedies and Penny Stock Reform Act of 1990
B)  The Securities Acts Amendments of 1990
C)  The National Securities Markets Improvement Act of 1996
D)  The Market Reform Act of 1990
E)  The Sarbanes-Oxley Act of 2002F) A) and E)
G) C) and D)

Question 6

The SEC issues opinions regarding the worth of securities.

Accepted Answer

A) True 
 B)False

Question 7

Should Kassie take her attorney's suggestion to spread the word about the securities so she can obtain more investors?

Accepted Answer

A)  Yes,as long as she does not exceed thirty-five unaccredited investors.
B)  No,issuers who make private offerings cannot advertise the securities to the general public.
C)  Yes,as long as she does not exceed thirty-five total investors.
D)  Yes,as long as she does not exceed thirty-five accredited investors.
E)  Yes,the private placement exemption,allows firms to issue an unlimited number of securities to an unlimited number of accredited investors.F) A) and C)
G) B) and C)

Question 8

The Securities and Exchange Commission was created by which of the following acts?

Accepted Answer

A)  The Oversight Act of 1935
B)  The Securities Act of 1933
C)  The Securities Exchange Act of 1934
D)  The Stock and Bond Act of 1930
E)  The Exchange Commission Act of 1932F) A) and C)
G) D) and E)

Question 9

Once an issuer files a registration statement and prospectus,the ________ period begins.

Accepted Answer

A)  Advertising
B)  Waiting
C)  Approval
D)  Post-filing
E)  ProspectusF) A) and D)
G) None of the above

Question 10

ABC Company,a designer of computer software,had a number of new products ready to launch.Sean,a seller of office supplies to ABC Company,was talking with Yumi,the president of the company,regarding a product order.Yumi was called away from her office for a few minutes,and Sean,who liked to be curious,took the opportunity to go through the papers on her desk.Sean discovered a description of the new software products.He immediately bought lots of ABC Company stock and made a significant profit following the public announcement of the new software and the resulting increase in the price of ABC Company stock.Is there any theory on which Sean could be held liable for a securities violation,and,if so,what? Describe any such theory.

Accepted Answer

Sean could be held liable for insider tr...

Exam 41: Corporations: Securities and Investor Protection

Which of the following is the term for the document referenced by Marc to be provided to the SEC that will be used as an advertising tool to potential investors who can rely on it to decide whether they should buy securities?

Correct Answer
verified

Correct Answer
verified
Sean could be held liable for insider tr...
View Answer

Which of the following permits the SEC to seek punishment of violators of foreign securities laws?

Correct Answer
verified

________ is the period that begins when an issuer starts to think about issuing securities and ends when the issuer files the registration statement and prospectus with the SEC.

Correct Answer
verified

The Securities and Exchange Commission was created by which of the following acts?

Correct Answer
verified

The SEC issues opinions regarding the worth of securities.

Correct Answer
verified

Which of the following is not considered an accredited investor?

Correct Answer
verified

Should Kassie take her attorney's suggestion to spread the word about the securities so she can obtain more investors?

Correct Answer
verified

Once an issuer files a registration statement and prospectus,the ________ period begins.

Correct Answer
verified

Government did not regulate securities prior to the Great Depression,and fraudulent transactions were common.

Correct Answer
verified

Exam 41: Corporations: Securities and Investor Protection

Which of the following is the term for the document referenced by Marc to be provided to the SEC that will be used as an advertising tool to potential investors who can rely on it to decide whether they should buy securities?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedSean could be held liable for insider tr...View AnswerShow Answer

Which of the following permits the SEC to seek punishment of violators of foreign securities laws?

Correct AnswerverifiedShow Answer

________ is the period that begins when an issuer starts to think about issuing securities and ends when the issuer files the registration statement and prospectus with the SEC.

Correct AnswerverifiedShow Answer

The Securities and Exchange Commission was created by which of the following acts?

Correct AnswerverifiedShow Answer

The SEC issues opinions regarding the worth of securities.

Correct AnswerverifiedShow Answer

Which of the following is not considered an accredited investor?

Correct AnswerverifiedShow Answer

Should Kassie take her attorney's suggestion to spread the word about the securities so she can obtain more investors?

Correct AnswerverifiedShow Answer

Once an issuer files a registration statement and prospectus,the ________ period begins.

Correct AnswerverifiedShow Answer

Government did not regulate securities prior to the Great Depression,and fraudulent transactions were common.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Sean could be held liable for insider tr...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified