Federal Securities

Question 1

Regulation D, Rule 505 exempts

Answer 1

issues of under $5,000,000 in securities over a 12-month period from the full registration requirements of the Securities Act of 1933

Question 2

Under the Securities Act of 1933, which of the following statements is(are) correct regarding the purpose of registration?

Answer 2

The purpose of registration is to adequately and accurately disclose financial and other information upon which investors may determine the merits of securities.

Question 3

Securities issued by charitable organizations are

Answer 3

exempt from the registration requirements of the 1933 Act.

Question 4

over-the-counter and other equity securities traded in interstate commerce must be

Answer 4

registered if the company has assets of more than $10 million and 500 or more shareholders.

Question 5

When a material event occurs, such as a significant acquisition of assets,

Answer 5

Form 8-K, a current report, with the SEC within 4 days after the material event occurs.