Mod 24 Wrong Answers Flashcards
A prospectus is given to…
Prospective purchasers of securities
If no exemption is applicable under the Securities Act of 1933, public offerings must…
Be registered with the SEC accompanied by a prospectus
The prospectus is part of…
The registration statement
The private placement exemption permits…
Sales of an unlimited number of securities for any dollar amount
When sold to accredited investors
Private placement exemption allows sales to up to…
35 nonaccredited investors if they are also sophisticated investors under the Act
Resales of private placement securities are restricted…
2 years after date that issuer sells last of the securities
Rule 506 permits sales to…
35 unaccredited investors and to unlimited number of accredited investors
The unaccredited investors must also be…
Sophisticated investors
Sophisticated investors
Individuals with knowledge and experience in financial matters
Under Rule 504 of Regulation D, what is permitted? 2
General offerings and solicitations are permitted
Under 504 Regulation D, the issuer need not…
Restrict the purchasers’ right to resell
Under the Securities Exchange Act of 1934 applies if…
Interstate commerce or mail is used
Under the Securities Exchange Act of 1934, any purchaser of…
More than 5% of a class of equity securities must file a report with The SEC
