0538452803_269416

0538452803_269416 - and prospectus on the 300,000 new...

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BLTC-9e Sample Answer for End-of-Chapter Hypothetical Question with Sample Answer Chapter 37: Investor Protection, Insider Trading, and Corporate Governance 37–2 Hypothetical Question with Sample Answer Huron Corp. has 300,000 common shares outstanding. The owners of these outstanding shares live in several different states. Huron has decided to split the 300,000 shares two for one. Will Huron Corp. have to file a registration statement
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Unformatted text preview: and prospectus on the 300,000 new shares to be issued as a result of the split? Explain. Sample Answer: No. Under federal securities law, a stock split is exempt from registration re-quirements. This is because no sale of stock is involved. The existing shares are merely being split, and no consideration is received by the corporation for the additional shares created....
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