Question 1

In which of the following types of sales is general public advertising permitted?

Accepted Answer

A) Rule 504 offerings 
B) Regulation A offerings 
C) Corporate reorganizations 
D) All of the above can be sold through general public advertising. 
A) Rule 504 offerings 
B) Regulation A offerings 
C) Corporate reorganizations 
D) All of the above can be sold through general public advertising.

Question 2

The O'Hagan case is the seminal case that declared exactly what a security is for federal acts and regulations.

Accepted Answer

A) True 
 B)False

Question 3

Under Sarbanes-Oxley, which of the following would be a conflict of interest for the outside auditor of a company?

Accepted Answer

A) Providing management consulting services to the company, too 
B) Providing actuarial service to the company, too 
C) Designing the company's financial system 
D) All of the above 
A) Providing management consulting services to the company, too 
B) Providing actuarial service to the company, too 
C) Designing the company's financial system 
D) All of the above

Question 4

A bond is not considered a security under federal law.

Accepted Answer

A) True 
 B)False

Question 5

Rule 504 has no limitations on number of offerees.

Accepted Answer

A) True 
 B)False

Question 6

Charlie Seam is a broker for a major stockbroker in New York City. Charlie took a job at night with a janitorial firm that is responsible for doing the cleaning on several of the major law firms in New York. These firms also handle the legal business for the largest companies in the United States. Over the past few years these same firms have drafted the documents and done the necessary filings for takeovers among these firms. Charlie has discovered that, as a supervisor, he is able to move freely around the offices and read of developing events on the partners' desks. Through this job Charlie has been able to make some very good investments for himself and his clients. Do Charlie's actions violate 10(b)?

Accepted Answer

Probably yes because he had no interest

Question 7

Which of the following exemptions under the 1933 Securities Act does not have limitations on the number of purchasers?

Accepted Answer

A) Rule 504 
B) Rule 505 
C) Rule 506 
D) All of the above have limitations on the number of purchasers. 
A) Rule 504 
B) Rule 505 
C) Rule 506 
D) All of the above have limitations on the number of purchasers.

Question 8

Shareholders who solicit proxies need not comply with Section 14 of the 1934 Act.

Accepted Answer

A) True 
 B)False

Question 9

An IPO does not require SEC registration.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following can be done before the registration statement is effective?

Accepted Answer

A) Tombstone ads 
B) Red herrings 
C) Offers to sell to accredited investors 
D) a and b 
E) All of the above 
A) Tombstone ads 
B) Red herrings 
C) Offers to sell to accredited investors 
D) a and b 
E) All of the above

Question 11

Shareholder proposals can include topics such as executive compensation.

Accepted Answer

A) True 
 B)False

Question 12

When can a company run a tombstone ad?

Accepted Answer

A) Only after the securities registration is approved 
B) Only if there is a national registration with the SEC 
C) Only if there is also a blue sky registration 
D) After the filing of the registration statement 
E) None of the above 
A) Only after the securities registration is approved 
B) Only if there is a national registration with the SEC 
C) Only if there is also a blue sky registration 
D) After the filing of the registration statement 
E) None of the above

Question 13

Insider trading rules apply only to officers and directors.

Accepted Answer

A) True 
 B)False

Question 14

Under Sarbanes-Oxley, audit committees of publicly held companies' boards need not be made up of independent members so long as the majority of the board is independent.

Accepted Answer

A) True 
 B)False

Question 15

There are no resale limitations on Regulation D offerings.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not a security for purposes of the 1933 Act?

Accepted Answer

A) A limited partnership interest 
B) A promissory note due in six months 
C) A demand note 
D) All of the above are securities. 
A) A limited partnership interest 
B) A promissory note due in six months 
C) A demand note 
D) All of the above are securities.

Question 17

The 1934 Act proxy registration requirements:

Accepted Answer

A) apply only to management. 
B) include a requirement for shareholders' proposals. 
C) are not applicable to dissenters' solicitations. 
D) None of the above 
A) apply only to management. 
B) include a requirement for shareholders' proposals. 
C) are not applicable to dissenters' solicitations. 
D) None of the above

Question 18

Pump and dump:

Accepted Answer

A) is a term for downloading music. 
B) refers to posting stock information on the Internet to increase its value before you sell. 
C) is not prohibited by the SEC. 
D) Both b and c 
A) is a term for downloading music. 
B) refers to posting stock information on the Internet to increase its value before you sell. 
C) is not prohibited by the SEC. 
D) Both b and c

Question 19

Section 16 applies:

Accepted Answer

A) only to shareholders. 
B) to directors of all covered corporations. 
C) when there is a purchase followed by a sale within a six-month period. 
D) All of the above 
A) only to shareholders. 
B) to directors of all covered corporations. 
C) when there is a purchase followed by a sale within a six-month period. 
D) All of the above

Question 20

Which firms would be required to file a 10-K?

Accepted Answer

A) Company with 600 shareholders and $5 million in assets and not listed on national exchange 
B) Company with 300 shareholders and $10 million in assets and not listed on a national exchange 
C) Company with 700 shareholders and $6 million in assets and listed on a national exchange 
D) All of the above 
A) Company with 600 shareholders and $5 million in assets and not listed on national exchange 
B) Company with 300 shareholders and $10 million in assets and not listed on a national exchange 
C) Company with 700 shareholders and $6 million in assets and listed on a national exchange 
D) All of the above

In which of the following types of sales is general public advertising permitted?

The O'Hagan case is the seminal case that declared exactly what a security is for federal acts and regulations.

Under Sarbanes-Oxley, which of the following would be a conflict of interest for the outside auditor of a company?

A bond is not considered a security under federal law.

Rule 504 has no limitations on number of offerees.

Which of the following exemptions under the 1933 Securities Act does not have limitations on the number of purchasers?

Shareholders who solicit proxies need not comply with Section 14 of the 1934 Act.

An IPO does not require SEC registration.

Which of the following can be done before the registration statement is effective?

Shareholder proposals can include topics such as executive compensation.

When can a company run a tombstone ad?

Insider trading rules apply only to officers and directors.

Under Sarbanes-Oxley, audit committees of publicly held companies' boards need not be made up of independent members so long as the majority of the board is independent.

There are no resale limitations on Regulation D offerings.

Which of the following is not a security for purposes of the 1933 Act?

The 1934 Act proxy registration requirements:

Pump and dump:

Section 16 applies:

Which firms would be required to file a 10-K?

Introduction to Law

Business Ethics and Social Responsibility

The Court System and Dispute Resolution

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts and Sales: Performance, Remedies, and Rights

Business Marketing and Products: Ads and Product Safety

Business Competition: Antitrust Law

Business and Intellectual Property Law

Agency Law

Governance and Structure: the Law of Business Associations

Business and Employees: Employment Regulation

Business and Employees: Employment Discrimination

Filters

Exam 17: Governance and Regulation: Securities Law

In which of the following types of sales is general public advertising permitted?

The O'Hagan case is the seminal case that declared exactly what a security is for federal acts and regulations.

Under Sarbanes-Oxley, which of the following would be a conflict of interest for the outside auditor of a company?

A bond is not considered a security under federal law.

Rule 504 has no limitations on number of offerees.

Which of the following exemptions under the 1933 Securities Act does not have limitations on the number of purchasers?

Shareholders who solicit proxies need not comply with Section 14 of the 1934 Act.

An IPO does not require SEC registration.

Which of the following can be done before the registration statement is effective?

Shareholder proposals can include topics such as executive compensation.

When can a company run a tombstone ad?

Insider trading rules apply only to officers and directors.

Under Sarbanes-Oxley, audit committees of publicly held companies' boards need not be made up of independent members so long as the majority of the board is independent.

There are no resale limitations on Regulation D offerings.

Which of the following is not a security for purposes of the 1933 Act?

The 1934 Act proxy registration requirements:

Pump and dump:

Section 16 applies:

Which firms would be required to file a 10-K?

Introduction to Law

Business Ethics and Social Responsibility

The Court System and Dispute Resolution

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts and Sales: Performance, Remedies, and Rights

Business Marketing and Products: Ads and Product Safety

Business Competition: Antitrust Law

Business and Intellectual Property Law

Agency Law

Governance and Structure: the Law of Business Associations

Business and Employees: Employment Regulation

Business and Employees: Employment Discrimination

Filters