Ch 41 Securities Law

Question 1

Howey test for securities

Answer 1

1. Investment in a common enterprise
2. Reasonable expectation of profit gained
3. Primarily or substantially from others’ efforts

Question 2

Registration statement items (6)

Answer 2

Description of securities offered for sale
Explanation of how proceeds from sale will be used
Description of registrant’s business and properties
Info about management of the company
Description of any pending lawsuits involving the registrant
Financial statements certified by an independent public accountant

Question 3

Prospectus

Answer 3

Advertising version of registration statement