cheeseman_buslaw7_tif_41

cheeseman_buslaw7_tif_41 - 41 INVESTORPROTECTIONAND...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1) The SEC is composed of five members who are appointed by the President. Answer: TRUE Diff: 1 Topic: The Securities and Exchange Commission (SEC) 2) The Securities and Exchange Commission was created as part of the Securities Exchange Act of 1934. Answer: TRUE Diff: 1 Topic: The Securities and Exchange Commission (SEC) 3) Pyramid sales schemes are not securities for purposes of federal securities law. Answer: FALSE Diff: 1 Topic: Definition of a Security 4) The Howery test is used to determine whether investment contracts are classified as securities for purposes of the federal securities laws. Answer: FALSE Diff: 2 Topic: Definition of a Security 5) The SEC issues ratings on the estimated risk of investing in a particular security. Answer: FALSE Diff: 1 Topic: The Securities Act of 1933 - Registration of Securities 6) The Securities Act of 1933 primarily regulates the issuance of securities. Answer: TRUE Diff: 1 Topic: The Securities Act of 1933 - Registration of Securities 121 INVESTOR PROTECTION AND  ONLINE SECURITIES  TRANSACTIONS 41
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
7) Generally, unless the SEC objects, a registration statement does not become effective until 20 days after it is filed. Answer: TRUE Diff: 1 Topic: The Securities Act of 1933 - Registration of Securities 8) An issuer may be a new company selling securities through an initial public offering. Answer: TRUE Diff: 2 Topic: The Securities Act of 1933 - Registration of Securities 9) A covered issuer need not file a written registration statement, as the SEC does not require any written formalities. Answer: FALSE Diff: 2 Topic: The Securities Act of 1933 - Registration of Securities 10) Issuers can place tombstone ads during the waiting period. Answer: TRUE Diff: 1 Topic: The Securities Act of 1933 - Registration of Securities 11) Under the Securities Act of 1933, at the latest, a final prospectus must be provided to a purchaser of securities by the time the sale is confirmed. Answer: TRUE Diff: 1 Topic: The Securities Act of 1933 - Registration of Securities 12) A prospectus has no real purpose other than to file a registration with the SEC. Answer: FALSE Diff: 1 Topic: Prospectus 13) A prospectus is used as a selling tool by the issuer. Answer: TRUE Diff: 2 Topic: Prospectus 122
Background image of page 2
14) Investors who purchase unregistered securities have no recourse against the sellers. Answer: FALSE Diff: 2 Topic: Sale of Unregistered Securities 15) Regulation A allows issuers to sell up to $100,000 of securities to the public during a 12- month period. Answer: FALSE Diff: 2 Topic: Regulation A Offerings 16) Misrepresentations about an offer or sale are considered to be a violation of the Securities Act of 1933. Answer: TRUE Diff: 1 Topic: Violations of the Securities Act of 1933 17) The omission of a material fact on a registration statement may be a violation of Section 11 of the Securities Act of 1933 unless the defendant utilizes the due diligence defense. Answer:
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 25

cheeseman_buslaw7_tif_41 - 41 INVESTORPROTECTIONAND...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online