LGS 200 Exam Questions with Verified Correct
Answers
Securities Act of 1933 and Securities Exchange Act of 1934
To boost inverstorconfidence, in the middle of depression- it requires a registration statement
to combat fraud to the SEC
Registration Statement
a long, complex document that firms must file with the SEC when they sell securities through
a public offering
Prospectus
an investment report to potential investors
Securites and Exchange Commission (SEC)
federal agency that regulates companies that sell stocks and bonds; was created as part of the
new deal of the 1930s
Material Information
any information that could influence the market value of a company or its products
U.S. v. Baghat (2006)
Worked for NVIDIA, black off on trading but he hept going and tipping and got nailed for
insider trading
Agency and employment relationships
enter into contract and be part of an agency
Vicarious Liability
, Legal responsibility placed on one person for the acts of another.
Employer-Employee Relationship
Employer hires employee to perform certain tasks; employer has right to control conduct of
employees
Employer
Independent conractor
Respondeat Superior
let the master answer
Contract liability of principal and agent
Principal normally liable if contract entered into within agent's realm of apparent
authority(back in Status Qoe)
Frolic and Detour
Personal error
Coming and Going Rule
On way or going home
Boose v Brinker dba Chilis
Parents said emplied agency on Chilis necause employee chased them
Fiduciary Relationships
A relationship of trust and confidence, as between trustee and beneficiary, attorney and client,
or principal and agent.
Answers
Securities Act of 1933 and Securities Exchange Act of 1934
To boost inverstorconfidence, in the middle of depression- it requires a registration statement
to combat fraud to the SEC
Registration Statement
a long, complex document that firms must file with the SEC when they sell securities through
a public offering
Prospectus
an investment report to potential investors
Securites and Exchange Commission (SEC)
federal agency that regulates companies that sell stocks and bonds; was created as part of the
new deal of the 1930s
Material Information
any information that could influence the market value of a company or its products
U.S. v. Baghat (2006)
Worked for NVIDIA, black off on trading but he hept going and tipping and got nailed for
insider trading
Agency and employment relationships
enter into contract and be part of an agency
Vicarious Liability
, Legal responsibility placed on one person for the acts of another.
Employer-Employee Relationship
Employer hires employee to perform certain tasks; employer has right to control conduct of
employees
Employer
Independent conractor
Respondeat Superior
let the master answer
Contract liability of principal and agent
Principal normally liable if contract entered into within agent's realm of apparent
authority(back in Status Qoe)
Frolic and Detour
Personal error
Coming and Going Rule
On way or going home
Boose v Brinker dba Chilis
Parents said emplied agency on Chilis necause employee chased them
Fiduciary Relationships
A relationship of trust and confidence, as between trustee and beneficiary, attorney and client,
or principal and agent.
