Question 1

A primary offering is an:

Accepted Answer

A) initial offering of securities. 
B) offering by a 1933 or 1934 Act company. 
C) offer of treasury shares to original shareholders. 
D) none of the above 
A) initial offering of securities. 
B) offering by a 1933 or 1934 Act company. 
C) offer of treasury shares to original shareholders. 
D) none of the above A

Question 2

If a company has made an offering under the Rule 504 exemption and had misrepresentations in the materials it gave to investors,which of the following is true?​

Accepted Answer

A) ​Because the company used an exemption, there is no liability for any misinformation communicated to investors. 
B) ​Shareholders could recover under Section 14 of the 1934 Securities Exchange Act. 
C) Shareholders could recover under Section 12. 
D) Shareholders could recover under Dodd-Frank provisions that apply to exempt offerings. 
A) ​Because the company used an exemption, there is no liability for any misinformation communicated to investors. 
B) ​Shareholders could recover under Section 14 of the 1934 Securities Exchange Act. 
C) Shareholders could recover under Section 12. 
D) Shareholders could recover under Dodd-Frank provisions that apply to exempt offerings. C

Question 3

Section 12 violations would include selling before the effective date.

Accepted Answer

A) True 
 B)False  True

Question 4

Section 10(b)applies to all securities sold in interstate commerce.

Accepted Answer

A) True 
 B)False

Question 5

The trend in international markets is away from regulating insider trading.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following exemptions under the 1933 Securities Act does not have limitations on the number of purchasers?

Accepted Answer

A) Rule 504 
B) Rule 505 
C) Rule 506 
D) All of the above have limitations on the number of purchasers. 
A) Rule 504 
B) Rule 505 
C) Rule 506 
D) All of the above have limitations on the number of purchasers.

Question 7

In a consolidation,a new firm is established.

Accepted Answer

A) True 
 B)False

Question 8

Who signs the 10-Qs and 10-Ks of publicly trading companies to certify their content?

Accepted Answer

A) CEO 
B) CFO 
C) both a and b 
D) The treasurer or controller of the company. 
A) CEO 
B) CFO 
C) both a and b 
D) The treasurer or controller of the company.

Question 9

EBITDA is the same as GAAP accounting.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not an accredited investor for purposes of Regulation D?

Accepted Answer

A) any bank 
B) anyone who certifies that he can afford to lose the investment 
C) a purchaser of $150,000 or more of the securities 
D) any person with income greater than $150,000 
A) any bank 
B) anyone who certifies that he can afford to lose the investment 
C) a purchaser of $150,000 or more of the securities 
D) any person with income greater than $150,000

Question 11

The 1934 Securities Exchange Act regulates the secondary sale of securities.

Accepted Answer

A) True 
 B)False

Question 12

Put the following steps in the securities registration process in chronological order.??Experts' opinions?Registration filing?Red herring prospectus?Tombstone ad?Offers to sell securities?Sale of securities?Registration approval

Accepted Answer

1.Experts' opinions
2.Registra

Question 13

Sarbanes-Oxley has special anti-retaliation protections for employees who raise questions about financial reports and internal accounting.

Accepted Answer

A) True 
 B)False

Question 14

Williams Act filings are:

Accepted Answer

A) only required of offerors. 
B) not required of white knights. 
C) not required in management offers. 
D) none of the above 
A) only required of offerors. 
B) not required of white knights. 
C) not required in management offers. 
D) none of the above

Question 15

An IPO does not require SEC registration.

Accepted Answer

A) True 
 B)False

Question 16

The 1933 Securities Act regulates primary offerings.

Accepted Answer

A) True 
 B)False

Question 17

Under Sarbanes-Oxley,audit partners in charge of accounts must be rotated every 10 years.

Accepted Answer

A) True 
 B)False

Question 18

Destruction of documents related to the financial reports of a company carries a 20-year penalty.

Accepted Answer

A) True 
 B)False

Question 19

An audit firm cannot conduct an audit of a company by which one of its former partners is the CFO.​

Accepted Answer

A) True 
 B)False

Question 20

Under the JOBS Act,emerging growth companies:​

Accepted Answer

A) ​are exempt from 1933 Act registration requirements. 
B) ​qualify for postponed 1934 Act requirements. 
C) are not required to have any SEC supervision for 5 years. 
D) need not have accredited investors in the 506 offerings. 
A) ​are exempt from 1933 Act registration requirements. 
B) ​qualify for postponed 1934 Act requirements. 
C) are not required to have any SEC supervision for 5 years. 
D) need not have accredited investors in the 506 offerings.

A primary offering is an:

If a company has made an offering under the Rule 504 exemption and had misrepresentations in the materials it gave to investors,which of the following is true?

Section 12 violations would include selling before the effective date.

Section 10(b)applies to all securities sold in interstate commerce.

The trend in international markets is away from regulating insider trading.

Which of the following exemptions under the 1933 Securities Act does not have limitations on the number of purchasers?

In a consolidation,a new firm is established.

Who signs the 10-Qs and 10-Ks of publicly trading companies to certify their content?

EBITDA is the same as GAAP accounting.

Which of the following is not an accredited investor for purposes of Regulation D?

The 1934 Securities Exchange Act regulates the secondary sale of securities.

Put the following steps in the securities registration process in chronological order.??Experts' opinions?Registration filing?Red herring prospectus?Tombstone ad?Offers to sell securities?Sale of securities?Registration approval

Sarbanes-Oxley has special anti-retaliation protections for employees who raise questions about financial reports and internal accounting.

Williams Act filings are:

An IPO does not require SEC registration.

The 1933 Securities Act regulates primary offerings.

Under Sarbanes-Oxley,audit partners in charge of accounts must be rotated every 10 years.

Destruction of documents related to the financial reports of a company carries a 20-year penalty.

An audit firm cannot conduct an audit of a company by which one of its former partners is the CFO.

Under the JOBS Act,emerging growth companies:

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts and Sales: Performance,Remedies,and Collection

Product Advertising and Liability

Business Competition: Antitrust

Business and Intellectual Property Law

Management of Employee Conduct: Agency

Governance and Structure: Forms of Doing Business

Management of Employee Welfare

Management: Employment Discrimination

Filters

Exam 18: Governance and Regulation: Securities Law

A primary offering is an:

If a company has made an offering under the Rule 504 exemption and had misrepresentations in the materials it gave to investors,which of the following is true?​

Section 12 violations would include selling before the effective date.

Section 10(b)applies to all securities sold in interstate commerce.

The trend in international markets is away from regulating insider trading.

Which of the following exemptions under the 1933 Securities Act does not have limitations on the number of purchasers?

In a consolidation,a new firm is established.

Who signs the 10-Qs and 10-Ks of publicly trading companies to certify their content?

EBITDA is the same as GAAP accounting.

Which of the following is not an accredited investor for purposes of Regulation D?

The 1934 Securities Exchange Act regulates the secondary sale of securities.

Put the following steps in the securities registration process in chronological order.??Experts' opinions?Registration filing?Red herring prospectus?Tombstone ad?Offers to sell securities?Sale of securities?Registration approval

Sarbanes-Oxley has special anti-retaliation protections for employees who raise questions about financial reports and internal accounting.

Williams Act filings are:

An IPO does not require SEC registration.

The 1933 Securities Act regulates primary offerings.

Under Sarbanes-Oxley,audit partners in charge of accounts must be rotated every 10 years.

Destruction of documents related to the financial reports of a company carries a 20-year penalty.

An audit firm cannot conduct an audit of a company by which one of its former partners is the CFO.​

Under the JOBS Act,emerging growth companies:​

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts and Sales: Performance,Remedies,and Collection

Product Advertising and Liability

Business Competition: Antitrust

Business and Intellectual Property Law

Management of Employee Conduct: Agency

Governance and Structure: Forms of Doing Business

Management of Employee Welfare

Management: Employment Discrimination

Filters

If a company has made an offering under the Rule 504 exemption and had misrepresentations in the materials it gave to investors,which of the following is true?

An audit firm cannot conduct an audit of a company by which one of its former partners is the CFO.

Under the JOBS Act,emerging growth companies: