Question 1

All of the following are exempt from registration under the 1933 Act EXCEPT:

Accepted Answer

A)  government bonds. 
B)  securities issued by nonprofit medical facilities. 
C)  certificates of deposit issued by banks. 
D)  insurance company annuities. 
A)  government bonds. 
B)  securities issued by nonprofit medical facilities. 
C)  certificates of deposit issued by banks. 
D)  insurance company annuities.

Question 2

Under the antifraud provisions of the securities acts,as long as the falsity is not contained in the prospectus,there is no liability where there is a registered security.

Accepted Answer

A) True 
 B)False

Question 3

The Foreign Corrupt Practices Act makes it illegal to offer a payment of money to a foreign official to influence a decision even if the payment is not made.

Accepted Answer

A) True 
 B)False

Question 4

Regulation Crowdfunding:

Accepted Answer

A)  allows startup companies to sell shares directly to a large number of investors without an intermediary broker. 
B)  became effective with the Penny Stock Reform Act of 1990. 
C)  allows an issuer to raise a maximum aggregate amount of $1 million through crowdfunding in a 12-month period. 
D)  All of these statements are true. 
A)  allows startup companies to sell shares directly to a large number of investors without an intermediary broker. 
B)  became effective with the Penny Stock Reform Act of 1990. 
C)  allows an issuer to raise a maximum aggregate amount of $1 million through crowdfunding in a 12-month period. 
D)  All of these statements are true.

Question 5

If a stock offering is made only to "accredited investors," there is no limit on the amount of the offering for the exemption to apply.

Accepted Answer

A) True 
 B)False

Question 6

Insiders would violate the short-swing profits rule (Rule 16b)of the 1934 Act by buying stock on January 1 and selling on May 1 of the same year.

Accepted Answer

A) True 
 B)False

Question 7

The SEC has adopted rules requiring an issuer's chief executive and chief financial officers to certify the financial and other information contained in the issuer's annual and quarterly reports.

Accepted Answer

A) True 
 B)False

Question 8

A basic objective of the Securities Act of 1933 is:

Accepted Answer

A)  to provide investors with material information concerning securities offered for sale to the public. 
B)  to prohibit misrepresentation and other fraudulent acts in the sale of only registered securities. 
C)  to provide disclosure requirements on publicly held corporations. 
D)  to regulate tender offers and proxy solicitations. 
A)  to provide investors with material information concerning securities offered for sale to the public. 
B)  to prohibit misrepresentation and other fraudulent acts in the sale of only registered securities. 
C)  to provide disclosure requirements on publicly held corporations. 
D)  to regulate tender offers and proxy solicitations.

Question 9

Hugo wishes to raise money for his restaurant.He offers to sell stock to his brothers,sisters,aunts,uncles,and cousins.The offering is made by telephone to each of the investors and amounts to a stock offering in the dollar amount of $1,500,000.The offering is made to a total of 38 family members and no notice is given to the SEC.Is this a permissible offering under the federal securities laws? Explain.

Accepted Answer

Hugo would probably be able to qualify f

Question 10

The Securities and Exchange Commission can seek civil injunctions and recommend that the Justice Department bring criminal prosecution against violators of federal securities laws.

Accepted Answer

A) True 
 B)False

Exam 43: Securities Regulation

All of the following are exempt from registration under the 1933 Act EXCEPT:

Under the antifraud provisions of the securities acts,as long as the falsity is not contained in the prospectus,there is no liability where there is a registered security.

The Foreign Corrupt Practices Act makes it illegal to offer a payment of money to a foreign official to influence a decision even if the payment is not made.

Regulation Crowdfunding:

If a stock offering is made only to "accredited investors," there is no limit on the amount of the offering for the exemption to apply.

Insiders would violate the short-swing profits rule (Rule 16b)of the 1934 Act by buying stock on January 1 and selling on May 1 of the same year.

The SEC has adopted rules requiring an issuer's chief executive and chief financial officers to certify the financial and other information contained in the issuer's annual and quarterly reports.

A basic objective of the Securities Act of 1933 is:

The Securities and Exchange Commission can seek civil injunctions and recommend that the Justice Department bring criminal prosecution against violators of federal securities laws.

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

A: Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance,breach,and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits,collections,and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature,formation,and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection Double

Employment Law

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property,property Insurance,bailments,and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

Legal Terminology: Understanding Criminal and Civil Law Systems

Contract Law Terminology

Exploring the Legal Concepts of Agency and Fiduciary Duty

Understanding Key Legal Concepts in Sales and Contracts

Understanding the Terminology of Banking and Finance: Key Concepts and Definitions

Exploring Legal Concepts and Processes in Business Partnerships

Understanding Corporate Law: A Guide to Ultra Vires Acts, Subscribers, Debt Securities, and More

Understanding Key Terms in Secured Transactions and Bankruptcy Law

Legal Topics and Terms

Legal Topics in Property Ownership and Management

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