12-20.pdf - 1 The states did not have federal legislation...

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Unformatted text preview: 1. The states did not have federal legislation prior to the time of the federal securities laws. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Easy NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: United States - OH - AICPA: BB-Legal State Securities Laws KEYWORDS: Bloom's: Knowledge 2. A primary offering is a first-time offering of shares for sale. a. True b. False ANSWER: POINTS: DIFFICULTY: NATIONAL STANDARDS: STATE STANDARDS: True 1 Easy United States - BUSPROG: Analytic - BUSPROG: Analytic United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: Primary Offering Regulation: The 1933 Securities Act Bloom's: Knowledge 3. A bond is not considered a security under federal law. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Easy NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - OH - AICPA: BB-Legal What is a Security? Bloom's: Knowledge 4. A limited partnership interest is not considered a security. a. True b. False ANSWER: POINTS: False 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: What is a Security? Bloom's: Knowledge 5. The 1933 Securities Act regulates primary offerings. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Easy NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: United States - OH - AICPA: BB-Legal Primary Offering Regulation: The 1933 Securities Act KEYWORDS: Bloom's: Knowledge 6. The 1934 Securities Exchange Act regulates the secondary sale of securities. a. True b. False ANSWER: POINTS: DIFFICULTY: NATIONAL STANDARDS: STATE STANDARDS: True 1 Easy United States - BUSPROG: Analytic - BUSPROG: Analytic United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: The Securities Exchange Act of 1934 Bloom's: Knowledge 7. Municipal bonds are exempt from SEC requirements. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Easy NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - OH - AICPA: BB-Legal What is a Security? Bloom's: Knowledge 8. The intrastate registration exemption requires that 100 percent of the offerees be residents of the same state as the issuer. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: Regulating Primary Offerings: Exemptions Bloom's: Knowledge 9. The intrastate registration exemption requires that 100 percent of the issuer's assets be located in its resident state. a. True b. False ANSWER: POINTS: DIFFICULTY: NATIONAL STANDARDS: False 1 Easy United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - OH - AICPA: BB-Legal Regulating Primary Offerings: Exemptions Bloom's: Knowledge 10. Regulation A short-form exemptions can be used for offerings of $5 million or less. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Easy NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: Regulating Primary Offerings: Exemptions Bloom's: Knowledge 11. Registration integration can produce a cumulative violation of several small offerings. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Easy NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: United States - OH - AICPA: BB-Legal What Must Be Filed: Documents and Information for Registration KEYWORDS: Bloom's: Knowledge 12. An accredited investor includes any corporation. a. True b. False ANSWER: POINTS: DIFFICULTY: NATIONAL STANDARDS: STATE STANDARDS: False 1 Moderate United States - BUSPROG: Analytic - BUSPROG: Analytic United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: Regulating Primary Offerings: Exemptions Bloom's: Comprehension 13. A natural person whose net worth is greater than $1 million is an accredited investor. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - OH - AICPA: BB-Legal Regulating Primary Offerings: Exemptions Bloom's: Comprehension 14. All Regulation D offerings can be sold through advertising. a. True b. False ANSWER: POINTS: False 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: Regulating Primary Offerings: Exemptions Bloom's: Comprehension 15. The SEC prohibits an analyst from issuing a report that is contrary to the analyst’s true opinion about a security. a. True b. False ANSWER: True POINTS: DIFFICULTY: 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - OH - AICPA: BB-Legal The Securities Exchange Act of 1934 Bloom's: Knowledge 16. Rule 505 carries a 35-purchaser maximum (excluding accredited investors). a. True b. False ANSWER: POINTS: DIFFICULTY: NATIONAL STANDARDS: STATE STANDARDS: TOPICS: KEYWORDS: True 1 Moderate United States - BUSPROG: Analytic - BUSPROG: Analytic United States - OH - AICPA: BB-Legal Regulating Primary Offerings: Exemptions Bloom's: Knowledge 17. A bank is an example of an accredited investor for purposes of Regulation D. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - OH - AICPA: BB-Legal Regulating Primary Offerings: Exemptions Bloom's: Knowledge 18. Rule 506 has no dollar limitations. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: Regulating Primary Offerings: Exemptions Bloom's: Knowledge 19. Rule 504 has no limitations on number of offerees. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - OH - AICPA: BB-Legal Regulating Primary Offerings: Exemptions Bloom's: Knowledge 20. Rule 506 carries a 35-purchaser maximum (excluding accredited investors). a. True b. False ANSWER: POINTS: DIFFICULTY: NATIONAL STANDARDS: STATE STANDARDS: True 1 Moderate United States - BUSPROG: Analytic - BUSPROG: Analytic United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: Regulating Primary Offerings: Exemptions Bloom's: Knowledge 21. Shareholder proposals that call for a shareholder vote on compensation are proper under SEC rules. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - OH - AICPA: BB-Legal Regulating Voter Information - Section 14 Bloom's: Application 22. There are no resale limitations on Regulation A offerings. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: Regulating Primary Offerings: Exemptions Bloom's: Knowledge 23. A tombstone ad can be run before the registration statement is effective. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: United States - OH - AICPA: BB-Legal What Must Be Filed: Documents and Information for Registration KEYWORDS: Bloom's: Knowledge 24. The SEC conducts a merit review of its filed registrations. a. True b. False ANSWER: POINTS: DIFFICULTY: NATIONAL STANDARDS: STATE STANDARDS: False 1 Moderate United States - BUSPROG: Analytic - BUSPROG: Analytic United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: What Must Be Filed: Documents and Information for Registration Bloom's: Knowledge 25. A red herring is a prospectus sent prior to the effective date of the registration date. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - OH - AICPA: BB-Legal What Must Be Filed: Documents and Information for Registration Bloom's: Knowledge 26. Section 11 of the 1933 Securities Act imposes liability for the failure to file a registration statement. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: What Must Be Filed: Documents and Information for Registration Bloom's: Knowledge 27. Only directors can be held liable for a Section 11 violation. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: United States - OH - AICPA: BB-Legal What Must Be Filed: Documents and Information for Registration KEYWORDS: Bloom's: Knowledge 28. Only those who actually signed the registration statement can be liable for a Section 11 violation. a. True b. False ANSWER: POINTS: DIFFICULTY: NATIONAL STANDARDS: STATE STANDARDS: False 1 Moderate United States - BUSPROG: Analytic - BUSPROG: Analytic United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: What Must Be Filed: Documents and Information for Registration Bloom's: Knowledge 29. The due diligence defense is one that is easy to establish. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - OH - AICPA: BB-Legal Violations of the 1933 Act Bloom's: Knowledge 30. A Section 12 violation results from making a material misstatement in a registration statement. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: Violations of the 1933 Act Bloom's: Knowledge 31. Selling securities before the effective date of the registration statement is a Section 12 violation. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: United States - OH - AICPA: BB-Legal Violations of the 1933 Act KEYWORDS: Bloom's: Knowledge 32. A company registered on the New York Stock Exchange must file a 10-Q report. a. True b. False ANSWER: POINTS: DIFFICULTY: NATIONAL STANDARDS: STATE STANDARDS: True 1 Moderate United States - BUSPROG: Analytic - BUSPROG: Analytic United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: The Securities Exchange Act of 1934 Bloom's: Application 33. Section 10(b) applies to all securities sold in interstate commerce. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - OH - AICPA: BB-Legal The 1934 Act Antifraud Provision: 10(b) Bloom's: Knowledge 34. Section 10(b) applies to corporate insiders and tippees. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: The 1934 Act Antifraud Provision: 10(b) Bloom's: Application 35. Only an actual seller or purchaser can bring a suit for civil recovery under 10(b). a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - OH - AICPA: BB-Legal The 1934 Act Antifraud Provision: 10(b) Bloom's: Knowledge 36. Section 16 applies to all stock transactions of directors and officers (of a 1934 Act company). a. True b. False ANSWER: POINTS: DIFFICULTY: NATIONAL STANDARDS: STATE STANDARDS: True 1 Moderate United States - BUSPROG: Analytic - BUSPROG: Analytic United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: Insider Trading and Short Swing Profits Bloom's: Comprehension 37. Registration statements must include audited financial statements. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - OH - AICPA: BB-Legal What Must Be Filed: Documents and Information for Registration Bloom's: Comprehension 38. The federal securities laws do not apply to proxy solicitation. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: Regulating Voter Information - Section 14 Bloom's: Comprehension 39. Blue sky laws are state securities registration laws. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Easy NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: United States - OH - AICPA: BB-Legal State Securites Laws KEYWORDS: Bloom's: Knowledge 40. A merit review standard is the same as the SEC review. a. True b. False ANSWER: POINTS: DIFFICULTY: NATIONAL STANDARDS: STATE STANDARDS: False 1 Easy United States - BUSPROG: Analytic - BUSPROG: Analytic United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: State Securities Laws Bloom's: Knowledge 41. Section 10(b) violations carry fines of only $10,000. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Easy NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - OH - AICPA: BB-Legal The Securities Exchange Act of 1934 Bloom's: Knowledge 42. A limited partnership interest is not considered a security. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: What is a Security? Bloom's: Application 43. Section 12 violations would include selling before the effective date. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: United States - OH - AICPA: BB-Legal Violations of the 1933 Act KEYWORDS: Bloom's: Comprehension 44. A false prospectus is covered under Section 11. a. True b. False ANSWER: POINTS: DIFFICULTY: NATIONAL STANDARDS: STATE STANDARDS: False 1 Moderate United States - BUSPROG: Analytic - BUSPROG: Analytic United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: Violations of the 1933 Act Bloom's: Comprehension 45. All companies required to register under the 1934 Act must file a 10-K report. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - OH - AICPA: BB-Legal The Securities Exchange Act of 1934 Bloom's: Comprehension 46. Regulation A filings are exempt from Section 11 liability. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: Regulating Primary Offerings: Exemptions Bloom's: Knowledge 47. A registration approved by the SEC need not be registered at the state level. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - OH - AICPA: BB-Legal Regulating Primary Offerings: Registration Bloom's: Knowledge 48. Bernie Madoff was sentenced to 50 years in prison for his fraud convictions. a. True b. False ANSWER: POINTS: DIFFICULTY: NATIONAL STANDARDS: STATE STANDARDS: False 1 Easy United States - BUSPROG: Analytic - BUSPROG: Analytic United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: The Securities Exchange Act of 1934 Bloom's: Knowledge 49. Shares of stock issued pursuant to a corporate reorganization must be registered. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - OH - AICPA: BB-Legal Regulating Primary Offerings: Exemptions Bloom's: Knowledge 50. Under Section 14, shareholders can make proposals for action in the proxy materials. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: Regulating Voter Information - Section 14 Bloom's: Knowledge 51. The intrastate exemption violates the commerce clause. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - OH - AICPA: BB-Legal Regulating Primary Offerings: Exemptions Bloom's: Knowledge 52. Insider trading rules apply only to officers and directors. a. True b. False ANSWER: POINTS: DIFFICULTY: NATIONAL STANDARDS: STATE STANDARDS: False 1 Moderate United States - BUSPROG: Analytic - BUSPROG: Analytic United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: The Securities Exchange Act of 1934 Bloom's: Application 53. Short-swing profits are acceptable if there was no inside information. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - OH - AICPA: BB-Legal Insider Trading and Short Swing Profits Bloom's: Knowledge 54. Shares issued through reorganizations must be registered. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: Regulating Primary Offerings: Exemptions Bloom's: Knowledge 55. Laddering is a safe-harbor section of the 1934 Act. a. True b. False ANSWER: POINTS: DIFFICULTY: False 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: United States - OH - AICPA: BB-Legal The Securities Exchange Act of 1934 KEYWORDS: Bloom's: Application 56. A merger is the combination of two firms into one of the old firms. a. True b. False ANSWER: POINTS: DIFFICULTY: NATIONAL STANDARDS: STATE STANDARDS: True 1 Moderate United States - BUSPROG: Analytic - BUSPROG: Analytic United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: Shareholder Rights in Takeovers, Mergers, and Consolidations Bloom's: Knowledge 57. A horizontal merger is a merger among competitors. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: TOPICS: KEYWORDS: United States - OH - AICPA: BB-Legal Shareholder Rights in Takeovers, Mergers, and Consolidations Bloom's: Knowledge 58. In a consolidation, a new firm is established. a. True b. False ANSWER: POINTS: DIFFICULTY: True 1 Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic - BUSPROG: Analytic STATE STANDARDS: United States - OH - AICPA: BB-Legal TOPICS: KEYWORDS: Shareholder Rights in Takeovers, Mergers, and Consolidations Bloom's: Knowledge 59. A tender offer is another form of business combination. a. True b. False ANSWER: ...
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