Multiple Choice Questions
1. Which of the following must be provided to every potential buyer of a new security?
a. A letter of comments.
b. A deficiency letter.
c. A prospectus.
d. A Form S-16.

2. What does the term incorporation by reference mean?
a. The legal incorporation of a company in more than one state.
b. Filing information with the SEC by indicating that the information is already available in another document.
c. A reference guide indicating informational requirements specified in Regulation S-X.
d. Incorporating a company in a state outside of its base of operations.

3. What is a letter of comments?
a. A letter the SEC sends to a company indicating needed changes or clarifications in a registration statement.
b. A questionnaire supplied to the SEC by a company suggesting changes in Regulation S-X.
c. A letter included in a Form 10-K to indicate the management's assessment of the company's financial position.
d. A letter composed by a company asking for information or clarification prior to the filing of a registration statement.

4. What is a prospectus?
a. A document attached to a Form 8-K.
b. A potential stockholder as defined by Regulation S-K.
c. A document a company files with the SEC prior to filing a registration statement.
d. The first part of a registration statement that a company must furnish to all potential buyers of a new security.

5. Which of the following is not exempt from registration with the SEC under the Securities Act of 1933?
a. Securities issued by a nonprofit religious organization.
b. Securities issued by a government unit.
c. A public offering of no more than $5.9 million.
d. An offering made to only 26 sophisticated investors.

6. Which of the following is usually not filed with the SEC on a regular periodic basis?
a. A Form 10-Q.
b. A prospectus.
c. A proxy statement.
d. A Form 10-K.

7. What is a shelf registration?
a. A registration statement that the SEC formally rejects.
b. A registration statement that the SEC rejects due to the lapse of a specified period of time.
c. A registration process for large companies that allows them to offer securities over a period of time without seeking additional approval by the SEC.
d. A registration form that is withdrawn by the registrant without any action having been taken.

8. What is EDGAR?
a. A system the SEC uses to reject registration statements that do not contain adequate information.
b. The enforcement arm of the SEC.
c. A system designed by the SEC to allow electronic filings.
d. A branch of the government that oversees the work of the SEC.

  • CreatedOctober 04, 2014
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