True or False:
1. Before permitting a company to issue new securities, the SEC investigates to ensure that the company has a promising future.
2. Small off erings of securities do not need to be registered with the SEC.
3. Price-fi xing is legal as long as it does not have an anticompetitive impact.
4. Only the federal government regulates securities off erings; the states do not.
5. It is legal for a company to sell its product at a price below cost as long as it does not intend to drive competitors out of business.