Unit 4

Question 1

A registration statement for a security becomes effective

Answer 1

A registration statement for a security becomes effective 20 days after it is filed, unless the SEC orders a delay.

Question 2

The Securities Act of 1933, sometimes referred to as the “paper act,” requires that

Answer 2

an effective, or final, prospectus be delivered to all purchasers of a new offering no later than with confirmation of the sale. It is not required that purchasers receive a red herring prospectus, and only the SEC gets copies of the registration statement.

Question 3

antifraud provisions apply to

Answer 3

exempt securities
exempt transactions
registered securities
advice on securites

NOT ON SALE OR ADVICE WITH NONSECURITIES

Question 4

506 B

Answer 4

no advertising and can have up to 35 non accredited investors

Question 5

506 c

Answer 5

can advertise, everyone has to be accredited investor

Question 6

accredited investor

who are?

rule number

file what form

Answer 6

individual with own or joint net worth greater than 1 milllion. 200k single or 300k joint for past 2 years

Institutional investor
employee benefit plans over 5 million(fed) state is 1 million
insider of the issuer

501

file form D within 15 days of sale

Question 7

uniform securites act states no person can offer or sell any security unless

Answer 7

registered under USA
exempt security or transaction
federal covered security