QUIZZ 6 CH 29 • Question 1 1 out of 1 points Frothy Beverage Corporation is a public company whose shares are traded in the public securities markets. Under the Securities Act of 1933, Frothy is required to Answer Selected Answer: d. disclose financial and other information about its securities. • Question 2 1 out of 1 points Flux Corporation is a public company whose shares are traded in the public securities markets. Under the Sarbanes-Oxley Act of 2002, Flux is subject to the direct corporate governance requirements of Answer Selected Answer: b. the federal government. • Question 3 1 out of 1 points Nouveau Riche Corporation, and its officers, directors, and shareholders, buy and sell securities. SEC Rule 10b-5 applies to Answer Selected Answer: c. the purchase or sale of any security. • Question 4 1 out of 1 points Della, an officer for Energy Petrol Corporation (EPC), buys 100 shares of EPC stock. One week later, EPC announces that it will merge with a competitor, Fuel Oil Company, and the price of EPC stock increases. One month later, Della sells her shares for a profit. Under Section 16(b) of the Securities Exchange Act of 1934, Della would not be liable if, after buying the stock, she had waited Answer Selected Answer: c. more than six months to sell it. • Question 5 1 out of 1 points Violations of the Securities Exchange Act of 1934 may be subject to criminal prosecution. Answer
Selected Answer: True • Question 6 1 out of 1 points Kirk is the chief financial officer of Lemon Corporation, which is required to file certain financial statements with the Securities and Exchange Commission (SEC). Under the Sarbanes-Oxley Act of 2002, Kirk must personally
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