Chapter 21 - CHAPTER 21SECURITIES LAW TRUE/FALSE 1. The...

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CHAPTER 21—SECURITIES LAW TRUE/FALSE 1. The states did not have federal legislation prior to the time of the federal securities laws. ANS: F NAT: AACSB: Analytic TOP: state regulations 2. A primary offering is a first-time offering of shares for sale. ANS: T NAT: AACSB: Analytic TOP: primary sales 3. A bond is not considered a security under federal law. ANS: F NAT: AACSB: Analytic TOP: securities 4. A limited partnership interest is not considered a security. ANS: F NAT: AACSB: Analytic TOP: securities 5. The 1933 Securities Act regulates primary offerings. ANS: T NAT: AACSB: Analytic TOP: 1933 Act 6. The 1934 Securities Exchange Act regulates the secondary sale of securities. ANS: T NAT: AACSB: Analytic TOP: 1934 Act 7. Municipal bonds are exempt from SEC requirements. ANS: T NAT: AACSB: Analytic TOP: securities 8. A stock split must be registered with the SEC. ANS: F NAT: AACSB: Analytic TOP: stock split 9. The intrastate registration exemption requires that 100 percent of the offerees be residents of the same state as the issuer. ANS: T NAT: AACSB: Analytic TOP: intrastate 10. The intrastate registration exemption requires that 100 percent of the issuer's assets be located in its resident state. ANS: F NAT: AACSB: Analytic TOP: intrastate 11. Regulation A short-form exemptions can be used for offerings of $5 million or less. ANS: T NAT: AACSB: Analytic TOP: Regulation A 12. Registration integration can produce a cumulative violation of several small offerings.
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ANS: T NAT: AACSB: Analytic TOP: registration 13. An accredited investor includes any corporation. ANS: F NAT: AACSB: Analytic TOP: accredited 14. A natural person whose net worth is greater than $1 million is an accredited investor. ANS: T NAT: AACSB: Analytic TOP: accredited 15. All Regulation D offerings can be sold through advertising. ANS: F NAT: AACSB: Analytic TOP: Regulation D 16. Rule 504 carries a 35-purchaser maximum (excluding accredited investors). ANS: F NAT: AACSB: Analytic TOP: Rule 504 17. Rule 505 carries a 35-purchaser maximum (excluding accredited investors). ANS: T NAT: AACSB: Analytic TOP: Rule 505 18. A bank is an example of an accredited investor for purposes of Regulation D. ANS: T NAT: AACSB: Analytic TOP: Regulation D 19. Rule 506 has no dollar limitations. ANS: T NAT: AACSB: Analytic TOP: Regulation D 20. Rule 504 has no limitations on number of offerees. ANS: T NAT: AACSB: Analytic TOP: Regulation D 21. Rule 506 carries a 35-purchaser maximum (excluding accredited investors). ANS: T NAT: AACSB: Analytic TOP: Rule 506 22. There are no resale limitations on Regulation D offerings. ANS: F NAT: AACSB: Analytic TOP: Regulation D 23. There are no resale limitations on Regulation A offerings. ANS: T
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This note was uploaded on 11/06/2010 for the course AA GM520 taught by Professor Aa during the Spring '10 term at DeVry Chicago.

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Chapter 21 - CHAPTER 21SECURITIES LAW TRUE/FALSE 1. The...

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