Chapter 23- Investor Protection and Online Securities Offerings

Chapter 23- Investor Protection and Online Securities Offerings

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Chapter 23- Investor Protection and Online Securities Offerings T RUE -F ALSE  Q UESTIONS         1. A security that does not qualify for an exemption must be registered before it is offered to the public.         2. Before a security can be sold to the public, prospective investors must be provided with a prospectus.         3. Stock splits are generally exempt from the registration requirements of the Securities Act of 1933.         4. Sales of securities may not occur until twenty days after registration.         5. Private offerings of securities in unlimited amounts that are not generally solicited or advertised must  be registered before they can be sold.         6. A proxy statement must fully and accurately disclose all of the facts that are pertinent to the matter on  which shareholders are being asked to vote.         7. All states have disclosure requirements and antifraud provisions that cover securities.          8. Scienter  is not a requirement for liability under Section 10(b) of the Securities Exchange Act of 1934.         9. No one who receives inside information as a result of another’s breach of his or her fiduciary duty can  be liable under SEC Rule 10b-5.        
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Chapter 23- Investor Protection and Online Securities Offerings

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