Rules and requirements

Question 1

For liability to be incurred under the 1933 Securities Act, what three things must be established?

Answer 1

misstatement or omission of a fact, materiality of the fact, and damages. Neither fraudulent intent nor negligence is required. Additionally, neither reliance nor privity of contact are necessary for recovery.

Question 2

What is the statute of limitations for securities fraud under the 1933 and 1934 Securities Acts.

Answer 2

The statute of limitations under the 1933 Act is the earlier of two years after discovery of the fraud or five years after the initial violation occurred. The statute of limitations for securities fraud was established by the Sarbanes-Oxley Act of 2002

Question 3

The PCAOB inspects smaller audit firms every how many years? How many years for large firms with 100 or more publicly traded client?

Answer 3

3 years for smaller firms, annually for large firms.

Question 4

What doe COD mean?

Answer 4

The term “C.O.D.” stands for cash on delivery,” and means that the buyer gives up his right to inspect before paying, but does not mean he gives up the right to sue if the goods are not per the contract

Question 5

Firm Offer

Answer 5

Under the Uniform Commercial Code an offer by a merchant to buy or sell goods in a signed writing that by its terms gives assurance that it will be held open is not revocable, for lack of consideration, during the time stated or if no time is stated for a reasonable time, but in no event may such period of irrevocability exceed three months.