Ch41-TB1-WBL-10O¦êv-F to Eric

Ch41-TB1-WBL-10O¦Ã&ordf...

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Chapter 41 Corporations— Securities Law and Corporate Governance N.B.:   TYPE  indicates that a question is new, modified, or unchanged, as  follows. N A question  new  to this edition of the Test Bank. = A question  modified  from the previous edition of the Test Bank, = A question  included  in the previous edition of the Test Bank. TRUE/FALSE QUESTIONS 1. Securities include investment contracts. ANSWER: T PAGE: 823 TYPE: N 2. The  least  common  forms   of   securities  are   stocks  and   bonds   issued  by  corporations. ANSWER: F PAGE: 823 TYPE: + 3. After a security is sold to the public, investors must be provided with a  prospectus. ANSWER: F PAGE: 824 TYPE: + 4. The red herring prospectus may not be distributed until ninety days after  registration. 155
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156 TEST BANK ONE—UNIT EIGHT: BUSINESS ORGANIZATIONS ANSWER: F PAGE: 824 TYPE: +
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CHAPTER 41: CORPORATIONS—SECURITIES LAW AND CORPORATE GOVERNANCE 157 5. Stock  splits   are   not   exempt  from   the   registration   requirements   of   the  Securities Act of 1933. ANSWER: F PAGE: 824 TYPE: + 6. No   securities   are   exempt   from   the   registration   requirements   of   the  Securities Act of 1933. ANSWER: F PAGE: 824 TYPE: N 7. Private offerings of securities in unlimited amounts that are  not  generally  solicited or advertised may be exempt from the registration requirements of  the Securities Act of 1933. ANSWER: T PAGE: 826 TYPE: = 8. To be resold, most securities must be registered. ANSWER: F PAGE: 827 TYPE: = 9. Section 10(b) of the Securities Exchange Act of 1934 covers only corporate  officers, directors, and majority shareholders. ANSWER: F PAGE: 828 TYPE: N 10. The Securities Exchange Act of 1934 provides for the regulation of brokers. ANSWER: T PAGE: 828 TYPE: = 11. The Securities Exchange  Act of 1934 does   not   define the term “inside  information.” ANSWER: F PAGE: 828 TYPE: + 12. The key to liability under Section 10(b) of the Securities Act of 1933 and  SEC Rule 10b-5 is whether undisclosed inside information is  material . ANSWER: T PAGE: 829 TYPE: = 13. Anyone who receives inside information as a result of an insider’s breach of  his or her fiduciary duty can be liable under SEC Rule 10b-5.
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158 TEST BANK ONE—UNIT EIGHT: BUSINESS ORGANIZATIONS ANSWER: T PAGE: 831 TYPE: =
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CHAPTER 41: CORPORATIONS—SECURITIES LAW AND CORPORATE GOVERNANCE 159 14. The misappropriation theory has a much narrower scope than the tip- per/tippee theory with regard to liability for inside trading.
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Ch41-TB1-WBL-10O¦Ã&ordf...

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