Select the correct answer for each of the following questions.
1. Which of the following statements concerning the prospectus required by the Securities Act of 1933 is correct?
a. The prospectus is a part of the registration statement.
b. The prospectus should enable the SEC to pass on the merits of the securities.
c. The prospectus must be filed after an offer to sell.
d. The prospectus is prohibited from being distributed to the public until the SEC approves the accuracy of the facts embodied therein.
2. Which of the following securities would be regulated by the provisions of the Securities Act of 1933?
a. Securities issued by not-for-profit, charitable organizations.
b. Securities guaranteed by domestic governmental organizations.
c. Securities issued by savings and loan associations.
d. Securities issued by insurance companies.
3. Which of the following securities is exempt from registration under the Securities Act of 1933?
a. Shares of nonvoting common stock provided their par value is less than $1.
b. A class of stock given in exchange for another class by the issuer to its existing stockholders without the issuer paying a commission.
c. Limited partnership interests sold for the purpose of acquiring funds to invest in bonds issued by the United States.
d. Corporate debentures that were previously subject to an effective registration statement provided they are convertible into shares of common stock.
4. Pix Corp. is making a $6,000,000 stock offering. Pix wants the offering exempt from registration under the Securities Act of 1933. Which of the following provisions of the act would Pix have to comply with for the offering to be exempt?
a. Regulation A.
b. Regulation D, Rule 504.
c. Regulation D, Rule 505.
d. Regulation D, Rule 506.
5. An offering made under the provisions of Regulation A of the Securities Act of 1933 requires that the issuer
a. File an offering circular with the SEC.
b. Sell only to accredited investors.
c. Provide investors the prior four years' audited financial statements.
d. Provide investors a proxy registration statement.
6. Which of the following factors by itself requires a corporation to comply with the reporting requirements of the Securities Exchange Act of 1934?
a. 600 employees.
b. Shares listed on a national securities exchange.
c. Total assets of $2 million.
d. 400 holders of equity securities.
7. Which of the following persons is not an insider of a corporation subject to the Securities Exchange Act of 1934 registration and reporting requirements?
a. An attorney for the corporation.
b. An owner of 5 percent of the corporation's outstanding debentures.
c. A member of the board of directors.
d. A stockholder who owns 10 percent of the outstanding common stock.

  • CreatedMay 23, 2014
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