Question 1

A merger is the combination of two firms into one of the old firms.

Accepted Answer

A) True 
 B)False

Question 2

The 1934 Act proxy registration requirements:

Accepted Answer

A) apply only to management. 
B) include a requirement for shareholders' proposals. 
C) are not applicable to dissenters' solicitations. 
D) none of the above 
A) apply only to management. 
B) include a requirement for shareholders' proposals. 
C) are not applicable to dissenters' solicitations. 
D) none of the above

Question 3

Jason Grady works on the loading dock at VIP Enterprises,Inc.Jason has noticed that shipments have slowed down for the past two months.VIP will issue its quarterly earnings report in three days.During a pool game at a local bar,Jason mentions to one of his friends that VIP is struggling because he is not loading the shipments he once did.Jason's friend positions himself short in VIP stock the next day.When VIP announces it quarterly earnings the next day,VIP's stock drops 17% and Jason's friend was able to make $5,200 on his short position.Which of the following statements is correct?​

Accepted Answer

A) ​Section 10b does not apply because Jason is not an officer, director, or 10% shareholder of VIP. 
B) ​Section 10b does not apply because Jason did not intend to tip his friend off; he was only discussing his work. 
C) Section 10b does not apply to short positions, only purchases and sales. 
D) none of the above 
A) ​Section 10b does not apply because Jason is not an officer, director, or 10% shareholder of VIP. 
B) ​Section 10b does not apply because Jason did not intend to tip his friend off; he was only discussing his work. 
C) Section 10b does not apply to short positions, only purchases and sales. 
D) none of the above

Question 4

A hostile tender offer is made:

Accepted Answer

A) to the board of the target company. 
B) to the shareholders of the target company. 
C) through SEC communications to shareholders. 
D) none of the above 
A) to the board of the target company. 
B) to the shareholders of the target company. 
C) through SEC communications to shareholders. 
D) none of the above

Question 5

The SEC prohibits an analyst from issuing a report that is contrary to the analyst's true opinion about a security.

Accepted Answer

A) True 
 B)False

Question 6

Rule 505 carries a 35-purchaser maximum (excluding accredited investors).

Accepted Answer

A) True 
 B)False

Question 7

Rule 504 has no limitations on number of offerees.

Accepted Answer

A) True 
 B)False

Question 8

Rule 506 carries a 35-purchaser maximum (excluding accredited investors).

Accepted Answer

A) True 
 B)False

Question 9

Selling securities before the effective date of the registration statement is a Section 12 violation.

Accepted Answer

A) True 
 B)False

Question 10

Who is liable for a Section 11 violation?

Accepted Answer

A) directors 
B) officers 
C) only directors who sign the registration statement 
D) both a and b 
E) none of the above 
A) directors 
B) officers 
C) only directors who sign the registration statement 
D) both a and b 
E) none of the above

Question 11

Under Sarbanes-Oxley,when must a company file an 8-K?

Accepted Answer

A) every quarter 
B) annually 
C) only when selling stock 
D) within two days of any changes listed in the statute 
A) every quarter 
B) annually 
C) only when selling stock 
D) within two days of any changes listed in the statute

Question 12

Investors in Internet crowd funding area islimited in the amount they can invest.

Accepted Answer

A) True 
 B)False

Question 13

A tender offer is another form of business combination.

Accepted Answer

A) True 
 B)False

Question 14

Jane and Blaine Anderson started a business selling purses,wallets,and belts throughout the United States.Jane and Blaine need $1,000,000 to fund an expansion of her business so that she can sell internationally.Jane and Blaine cannot afford to register a stock offering.Blaine was once an investment banker who entered into a civil settlement with the SEC following charges that his company misled investors about an offering the firm handled.Which of the following would work for Jane and Blaine as a means for raising the money?

Accepted Answer

A) Since they only want to raise $1,000,000, crowd funding would be a means for doing so. 
B) A Regulation A offering meets their needs. 
C) They would qualify for an intrastate exemption. 
D) none of the above 
A) Since they only want to raise $1,000,000, crowd funding would be a means for doing so. 
B) A Regulation A offering meets their needs. 
C) They would qualify for an intrastate exemption. 
D) none of the above

Question 15

Section 11 of the 1933 Securities Act imposes liability for the failure to file a registration statement.

Accepted Answer

A) True 
 B)False

Question 16

The SEC conducts a merit review of its filed registrations.

Accepted Answer

A) True 
 B)False

Question 17

Insider trading rules apply only to officers and directors.

Accepted Answer

A) True 
 B)False

Question 18

Under Sarbanes-Oxley,a company musthave acode of ethics for a financial reporting officer.

Accepted Answer

A) True 
 B)False

Question 19

Tippees:

Accepted Answer

A) are people who get information from corporate insiders. 
B) are relatives of corporate directors who are given nonpublic information. 
C) can be liable under section 10(b). 
D) all of the above 
A) are people who get information from corporate insiders. 
B) are relatives of corporate directors who are given nonpublic information. 
C) can be liable under section 10(b). 
D) all of the above

Question 20

What does the Securities Litigation Reform Act's safe harbor provision do?

Accepted Answer

A) eliminates director and officer liability under Section 11 
B) eliminates auditors' liability under Section 11 
C) provides liability protection for income predictions in the registration statement 
D) all of the above 
A) eliminates director and officer liability under Section 11 
B) eliminates auditors' liability under Section 11 
C) provides liability protection for income predictions in the registration statement 
D) all of the above

A merger is the combination of two firms into one of the old firms.

The 1934 Act proxy registration requirements:

A hostile tender offer is made:

The SEC prohibits an analyst from issuing a report that is contrary to the analyst's true opinion about a security.

Rule 505 carries a 35-purchaser maximum (excluding accredited investors).

Rule 504 has no limitations on number of offerees.

Rule 506 carries a 35-purchaser maximum (excluding accredited investors).

Selling securities before the effective date of the registration statement is a Section 12 violation.

Who is liable for a Section 11 violation?

Under Sarbanes-Oxley,when must a company file an 8-K?

Investors in Internet crowd funding area islimited in the amount they can invest.

A tender offer is another form of business combination.

Section 11 of the 1933 Securities Act imposes liability for the failure to file a registration statement.

The SEC conducts a merit review of its filed registrations.

Insider trading rules apply only to officers and directors.

Under Sarbanes-Oxley,a company musthave acode of ethics for a financial reporting officer.

Tippees:

What does the Securities Litigation Reform Act's safe harbor provision do?

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 merger is the combination of two firms into one of the old firms.

The 1934 Act proxy registration requirements:

A hostile tender offer is made:

The SEC prohibits an analyst from issuing a report that is contrary to the analyst's true opinion about a security.

Rule 505 carries a 35-purchaser maximum (excluding accredited investors).

Rule 504 has no limitations on number of offerees.

Rule 506 carries a 35-purchaser maximum (excluding accredited investors).

Selling securities before the effective date of the registration statement is a Section 12 violation.

Who is liable for a Section 11 violation?

Under Sarbanes-Oxley,when must a company file an 8-K?

Investors in Internet crowd funding area islimited in the amount they can invest.

A tender offer is another form of business combination.

Section 11 of the 1933 Securities Act imposes liability for the failure to file a registration statement.

The SEC conducts a merit review of its filed registrations.

Insider trading rules apply only to officers and directors.

Under Sarbanes-Oxley,a company musthave acode of ethics for a financial reporting officer.

Tippees:

What does the Securities Litigation Reform Act's safe harbor provision do?

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