True/False
Indicate whether the sentence or statement is true
or false.
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1.
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Securities include investment contracts.
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2.
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The
least common forms of securities are stocks and bonds issued by corporations.
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3.
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After
a security is sold to the public, investors must be provided with a prospectus.
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4.
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The
red herring prospectus may not be distributed until ninety days after registration.
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5.
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Stock
splits are not exempt from the registration requirements of the Securities Act of 1933.
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6.
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No
securities are exempt from the registration requirements of the Securities Act of 1933.
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7.
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Private offerings of securities in unlimited amounts that are not generally
solicited or advertised may be exempt from the registration requirements of the Securities Act of
1933.
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8.
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To be
resold, most securities must be registered.
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9.
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Section 10(b) of the Securities Exchange Act of 1934 covers only corporate officers,
directors, and majority shareholders.
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10.
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The
Securities Exchange Act of 1934 provides for the regulation of brokers.
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11.
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The
Securities Exchange Act of 1934 does not define the term "inside
information."
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12.
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The
key to liability under Section 10(b) of the Securities Act of 1933 and SEC Rule 10b-5 is whether
undisclosed inside information is material.
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13.
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Anyone who receives inside information as a result of an insider's breach of his or
her fiduciary duty can be liable under SEC Rule 10b-5.
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14.
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The
misappropriation theory has a much narrower scope than the tipper/tippee theory with regard to
liability for inside trading.
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15.
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Scienter is a requirement for liability under Section 10(b) of the Securities
Exchange Act of 1934.
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16.
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Investment companies may pay dividends to their investors only from accumulated,
undistributed net income.
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17.
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State
securities laws apply only to interstate transactions.
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18.
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"Blue sky laws" are federal securities laws.
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19.
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A
prospectus in downloadable form can meet the requirements of the Securities and Exchange
Commission.
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20.
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A
Regulation D exemption may be disqualified if the offeror places the offering circular on the Web for
general consumption by anybody on the Internet.
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