Exam 36: Investor Protection, insider Trading, and Corporate Governance

In the context of Section 16(b)of the Securities Exchange Act of 1934,insiders include officers,directors,and large stockholders of Section 12 corporations.

OnSpec,Inc.,and its officers,directors,and shareholders,buy and sell securities. Section 16(b)of the Securities Exchange Act of 1934 covers purchases and sales of securities involving

Space Trips Inc. files a registration statement with the SEC before making an offering to the general public. The registration contains false,immaterial statements of which the investors are unaware. Space Trips is charged with violating the Securities Act of 1933. Space Trips's best defense is

Sun & Ski Tours Corporation is poised to issue securities that,under the Securities Act of 1933,are "exempt." This means that the securities can be sold

Fresh Fruit Company has assets of less than $10 million and fewer than fifty shareholders. Gourmand Pastries,Inc.,has assets of more than $50 million and more than five hundred shareholders. The Securities Exchange Act of 1934 applies to

Most private,midsize-business,non investment company offers of securities are not exempt from the registration requirements.

Every state has its own corporate securities laws that regulate the offer and sale of securities within tis borders.

For a defendant to be convicted in a criminal prosecution under the securities laws,there can be no reasonable doubt that the defendant knew he or she was acting wrongfully.

Accredited investors include banks,but not investment companies.

Under the Securities Exchange Act of 1934,Giselle is most likely

The definition of security in the Securities Act of 1933 does not include instruments commonly known as securities.

Most securities can be resold without registration.

If a security does not qualify for an exemption,an issuer cannot offer it to the public.

The sale and transfer of securities are heavily regulated by federal and state statutes and by government agencies.

Securities offerings in unlimited amounts can be exempt from the registration requirements in certain circumstances.

Grain Mills Corporation is required to register its securities under Section 12 of the Securities Exchange Act of 1934. Section 14(a)of the act regulates

Global Trade Corporation is a public company that is poised to issue securities that do not qualify for an exemption from registration. This means that Global Trade must

Lyman is the chief financial officer of Moneysworth Corporation,which is required to file certain financial statements with the Securities and Exchange Commission (SEC). Under the Sarbanes-Oxley Act of 2002,Lyman must personally

HVAC Heating & Air Conditioning,Inc.,is a public company whose shares are traded in the public securities markets. Under the Sarbanes-Oxley Act of 2002,to ensure that HVAC's financial results are accurate and timely,the firm's senior officers must set up and maintain

The Securities and Exchange Commission does not regulate the content of proxy statements.