Question 1

Crowdfunding can be exempt from the registration requirements of the Securities Act of 1933 if shares are offered directly to investors.

Accepted Answer

A) True 
 B)False

Question 2

To avoid sanctions under the Securities Exchange Act of 1934,whoever solicits a proxy must accurately disclose all facts pertinent to the matter on which shareholders are to vote.

Accepted Answer

A) True 
 B)False

Question 3

The purpose of the Securities Act of 1933 is to regulate a security's investment price.

Accepted Answer

A) True 
 B)False

Question 4

Movie Time Corporation files a registration statement and delivers a prospectus to the appropriate parties.These items are intended to enable the evaluation of certain financial risks by

Accepted Answer

A)   market professionals to explain to all investors.
B)   government regulators to disclose to the general public.
C)   sophisticated investors only.
D)   unsophisticated investors.E) A) and B)
F) A) and C)

Question 5

Securities can be sold before the effective date of the registration statement without restrictions.

Accepted Answer

A) True 
 B)False

Question 6

As part of a stock offering for Design Media Corporation,the firm's accountant Eve intentionally misrepresents material facts in the prospectus.Fred buys the stock unaware of the misrepresentation and suffers a loss.Eve may be subject to

Accepted Answer

A)   none of the choices.
B)   job termination but no other sanctions,penalties,or liability.
C)   a fine,imprisonment,and damages.
D)   professional censure but no criminal sanctions or civil liability.E) A) and C)
F) All of the above

Question 7

Dez is the chief financial officer of Elements Corporation,which is required to file certain financial statements with the Securities and Exchange Commission (SEC) .Under the Sarbanes-Oxley Act of 2002,Dez must personally

Accepted Answer

A)   certify that the statements are accurate.
B)   delegate the responsibility for preparing the statements.
C)   deliver the statements to the appropriate SEC officer.
D)   prepare the statements.E) None of the above
F) A) and C)

Question 8

Stocks represent corporate debt.

Accepted Answer

A) True 
 B)False

Question 9

Under the Sarbanes-Oxley Act of 2002,all members of a publicly traded corporation's audit committee must be outside directors.

Accepted Answer

A) True 
 B)False

Question 10

Mars Mission Inc.is a regulated publicly held corporation.Under the Securities Act of 1934,Mars is required to

Accepted Answer

A)   contribute to the operations of national stock exchanges.
B)   disclose information about its organization and financial situation.
C)   engage in market surveillance to deter undesirable practices.
D)   all of the choices.E) All of the above
F) None of the above

Question 11

Forward-looking forecasts that turn out to be wrong can be protected against liability for securities fraud if they include "meaningful cautionary statements."

Accepted Answer

A) True 
 B)False

Question 12

Under the Securities Act of 1933,securities include

Accepted Answer

A)   any instrument representing corporate ownership or debt.
B)   a common enterprise reasonably expected to make a profit.
C)   an investment in one's own personal entrepreneurial effort.
D)   whatever a corporation represents to the public as profitable.E) All of the above
F) A) and B)

Exam 19: Investor Protection and Corporate Governance

Movie Time Corporation files a registration statement and delivers a prospectus to the appropriate parties.These items are intended to enable the evaluation of certain financial risks by

Correct Answer
verified

Securities can be sold before the effective date of the registration statement without restrictions.

Correct Answer
verified

Crowdfunding can be exempt from the registration requirements of the Securities Act of 1933 if shares are offered directly to investors.

Correct Answer
verified

To avoid sanctions under the Securities Exchange Act of 1934,whoever solicits a proxy must accurately disclose all facts pertinent to the matter on which shareholders are to vote.

Correct Answer
verified

As part of a stock offering for Design Media Corporation,the firm's accountant Eve intentionally misrepresents material facts in the prospectus.Fred buys the stock unaware of the misrepresentation and suffers a loss.Eve may be subject to

Correct Answer
verified

Under the Securities Act of 1933,securities include

Correct Answer
verified

Forward-looking forecasts that turn out to be wrong can be protected against liability for securities fraud if they include "meaningful cautionary statements."

Correct Answer
verified

The purpose of the Securities Act of 1933 is to regulate a security's investment price.

Correct Answer
verified

Dez is the chief financial officer of Elements Corporation,which is required to file certain financial statements with the Securities and Exchange Commission (SEC) .Under the Sarbanes-Oxley Act of 2002,Dez must personally

Correct Answer
verified

Stocks represent corporate debt.

Correct Answer
verified

Mars Mission Inc.is a regulated publicly held corporation.Under the Securities Act of 1934,Mars is required to

Correct Answer
verified

Under the Sarbanes-Oxley Act of 2002,all members of a publicly traded corporation's audit committee must be outside directors.

Correct Answer
verified

Exam 19: Investor Protection and Corporate Governance

Movie Time Corporation files a registration statement and delivers a prospectus to the appropriate parties.These items are intended to enable the evaluation of certain financial risks by

Correct AnswerverifiedShow Answer

Securities can be sold before the effective date of the registration statement without restrictions.

Correct AnswerverifiedShow Answer

Crowdfunding can be exempt from the registration requirements of the Securities Act of 1933 if shares are offered directly to investors.

Correct AnswerverifiedShow Answer

To avoid sanctions under the Securities Exchange Act of 1934,whoever solicits a proxy must accurately disclose all facts pertinent to the matter on which shareholders are to vote.

Correct AnswerverifiedShow Answer

As part of a stock offering for Design Media Corporation,the firm's accountant Eve intentionally misrepresents material facts in the prospectus.Fred buys the stock unaware of the misrepresentation and suffers a loss.Eve may be subject to

Correct AnswerverifiedShow Answer

Under the Securities Act of 1933,securities include

Correct AnswerverifiedShow Answer

Forward-looking forecasts that turn out to be wrong can be protected against liability for securities fraud if they include "meaningful cautionary statements."

Correct AnswerverifiedShow Answer

The purpose of the Securities Act of 1933 is to regulate a security's investment price.

Correct AnswerverifiedShow Answer

Dez is the chief financial officer of Elements Corporation,which is required to file certain financial statements with the Securities and Exchange Commission (SEC) .Under the Sarbanes-Oxley Act of 2002,Dez must personally

Correct AnswerverifiedShow Answer

Stocks represent corporate debt.

Correct AnswerverifiedShow Answer

Mars Mission Inc.is a regulated publicly held corporation.Under the Securities Act of 1934,Mars is required to

Correct AnswerverifiedShow Answer

Under the Sarbanes-Oxley Act of 2002,all members of a publicly traded corporation's audit committee must be outside directors.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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