FED SECURITIES LAW practice questions

12 terms by rkaiser1 

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LAW FINAL

Beverage Corporation is a publicly traded company whose shares are traded in the public securities markets. Under the Securities Act of 1933, Beverage is required to:

disclose financial and other information about its securities.

RingTone Corporation is a public company whose securities are traded among investors. Under the Securities Act of 1933, a security is

almost any stake in the ownership or debt of a company.

E Clean Corporation wants to make an offering of securities to the public. This offering is not exempt from registration under the Securities Act of 1933. Before E Clean sells its securities, it must provide investors with:

a prospectus.

Sell Corporation is required to file a registration statement with the SEC. This statement must contain:

a description of the securities being offered for sale.

Start-Up Enterprises, Inc. completes its registration process and begins advertising the availability of its new issue of securities. Start-Up places a tombstone ad in the financial papers. This ad tells prospective investors

where to obtain a prospectus

Flo-Thru, Inc. is poised to issue securities that, under the Securities Act of 1933, are "exempt." This means that the securities are sold

without being registered.

Hobby, the CEO of Ideal Gamers, Inc. ("IGI"), intentionally understates the amount of IGI's debts in information provided to investors as part of an issue of IGI stock. Jack buys the stock and suffers a loss. Hobby may be subject to:

government prosecution and Jack's lawsuit.

Incorrect Company, Inc. files a registration statement with the SEC before making an offering to the general public. The registration statement contains false, immaterial statements of which the investors are unaware. Incorrect Company is charged with violating the Securities Act of 1933. Incorrect Company's best defense is:

the untrue statements were not material.

New Discoveries Corporation and its officers, directors, and shareholders, buy and sell securities. Section 10(b) of the Securities Exchange Act of 1934 applies to:

the purchase or sale of a security.

Rich Corporation and its officers, directors, and shareholders, buy and sell securities. SEC Rule 10b-5 applies to:

the purchase or sale of a security

Heavy Hauling, Inc., as a publicly-traded company whose shares are traded in the public securities markets. Under the Sarbanes-Oxley Act of 2002 ("SOX"), to ensure that Heavy Hauling's financial results are accurate and timely, the firm's senior officers must set up and maintain:

internal "disclosure controls and procedures."

Lara is the CEO and Kirk is the CFO of Micro, Inc., which is required to file certain financial reports with the SEC. Under SOX, Lara and Kirk must:

certify that the reports are complete and accurate

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