Which of the following would most accurately represent activity that blue sky laws are designed to protect against?
a. Seller offers to sell “valuable waterfront property” to investors which are actually nothing but worthless swampland.
b. Seller offers to sell securities in a corporation that could potentially turn out to be unprofitable.
c. Investor invests in product that is environmentally harmful.
d. Corporation offers investors an investment opportunity in an underperforming business enterprise.
A corporation’s registration statement should include information addressing all of the following, except:
a. Management of the corporation.
b. The financial condition of the corporation.
c. Disclosure of political contributions made in the name of the corporation.
d. The planned or prospective use of any moneys rose.
Under the Securities Act of 1933, the term “integration” is best described as:
a. The reorganization of a corporation’s management personnel.
b. The sale of securities to a diverse socio-economic group of investors.
c. The process used by the issuer of securities to combine separate exempt transaction offerings.
d. The merger of two major corporations that provide similar goods or services to the public.
Under the Securities Acts of 1933 and 1934, an “insider” is best described as:
a. The four or five highest ranking officers employed by a corporation.
b. Experts who are hired to perform audits of the corporation.
c. High ranking officials employed by the Securities Exchange Commission (SEC).
d. Persons who are trusted with material and confidential informant about a corporation by the corporation.