Exam 41: Corporations: Securities and Investor Protection

The Board of Directors of Faith Church,Inc.wants to issue securities to raise funds.Its attorney tells the Board that it does not need to file a registration document with the SEC.Is the attorney correct?

Any security offered or sold to a permanent resident of the single state where the issuer of the security resides and does business is exempt under the 1933 act.

Which is the correct term for a person who controls,is controlled by,or is in common control with the issuer?

Considering Aurelia provided information about the asset sale to Johan,which of the following terms best describes Aurelia's role?

Which of the following references profit made by a statutory insider from the purchase and sale of their own company stock within a six-month period?

Were Alessia's negotiations with underwriters permissible?

If a violation of federal securities laws is serious enough to merit criminal prosecution,the Fraud Section of the Securities and Exchange Commission prosecutes the action.

Is Kassie's attorney correct that she does not have to provide financial information contained in the registration statement because the proposed offering is a private placement offering?

Which of the following,if any,may be defenses for Isaiah?

Which of the following statements is false about securities and securities regulation?

Noelle,a Montana resident,purchases Valley Vineyard securities in January.In July,after the restaurant opens,Noelle wants to sell the securities to a well-known investor from Idaho.Is the sale permissible?

A[n] ________ prospectus is a prospectus with a warning written in red print at the top of the page warning investors that the registration has been filed with the SEC but has not yet been approved.

Which of the following regulates how companies issue securities?

Which of the following is a reason Congress passed the Private Securities Litigation Reform Act of 1995?

Which of the following statements is false about marketing securities on the internet?

If Valley Vineyard is not required to register with the SEC,how much capital can it raise?

Which of the following is true regarding Isaiah's sale of securities before the effective date of registration?

List the four major responsibilities of the SEC as set forth in the text.

[Cosmetic Securities] Alessia,the President of Quik Cosmetics,wanted to take her company public.She begins meeting with underwriters and sends out a press release mentioning the potential issuance of securities.She then files a registration document and prospectus.In her registration document,she described the securities,how the money from the sale of the securities will be used,described her business and property,and included information about a pending lawsuit in the process of being settled. -What information is missing from Quik Cosmetics' registration statement?

Describe what a registration statement filed with the SEC generally contains.