Exam 41: Investor Protection and E-Securities Transactions

A(n) ________ is an exemption from registration which states that securities transactions not made by an issuer, an underwriter, or a dealer do not have to be registered with the SEC.

Which of the following is true of Section 24 of the Securities Act of 1933?

The courts apply the ________ in determining whether an arrangement is an investment contract.

The nonissuer exemption permits local businesses to raise capital from local investors to be used in the local economy without the need to register with the SEC.

Interests in oil, gas, and mineral rights are classified as ________.

Distinguish between nonissuer exemption, intrastate offering exemption, and private placement exemption.

A confidential draft registration statement is a public filing to initiate an IPO.

Which of the following is true about crowdfunding?

Which of the following is classified under "common securities"?

How does Section 16(b) of the Securities Exchange Act of 1934 protect the interests of a corporation? Explain with an example.

Small businesses can file ________ with the SEC if they plan on raising $1 million or less from the public issue of securities.

A(n) ________ is a person who discloses material nonpublic information to another person.

________ created a new category of issuer under federal securities laws called the emerging growth company.

An accredited investor is defined as a person who does not understand the risks involved in securities investment and will suffer considerable financial damage if the investment fails.

An offering circular requires less disclosure compared to a registration statement.

A(n) ________ is an exemption from registration that permits local businesses to raise capital from local investors to be used in the local economy without the need to register with the SEC.

________ permits issuers to sell up to $5 million of securities to the public during a 12-month period, pursuant to a simplified registration with the SEC.

The sale of securities by an issuer to the public is known as an initial public offering.

A(n) ________ is submitted along with the registration statement to the SEC and also used as a selling tool to help prospective investors evaluate the financial risk of an investment.

"Blue-sky" laws are state laws that regulate the issuance and trading of securities.