The general purpose of the Securities Act of 1933 is to:
Answer(s): C
provide for disclosure of information about new securities offerings. The 1933 act is primarily concerned with registration and disclosures relating to new securities.
Provisions of SEC Rule 145 normally apply to an exchange of one security for another as a result of:
a merger. Rule 145 basically applies to mergers, consolidations, and acquisitions.
Which of the following would not be subject to the holding period restrictions under Rule 144?
Answer(s): D
restricted stock acquired via open market purchase. The two-year holding period does not apply when the security is acquired in the open market. However, if the security is owned by a control person, the other provisions of Rule 144 do apply.
Which of the following does not describe an underwriting procedure?
fill or kill. Fill or kill is an order qualifier. It requests immediate execution of the whole order or immediate cancellation. A best efforts underwriting, frequently linked to all or none, is usually seen on small new issues. A standby underwriting is utilized to guarantee the success of a rights offering.
The registration requirements of the federal securities acts are intended to protect the public interest by providing for a prospectus on new issues and its review by the SEC.Which of the following is the true of this process?
Answer(s): A
It does not imply SEC approval of the issue. The SEC does not approval an issue. It only attempts to see that sufficient information has been provided from which a proper investment determination may be made.
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