LES 305 ASU Koretz final exam Rated 100% Correct!!

"Fair-Disclosure Rule" (Regulation FD) - Federal securities regulation that requires publicly traded companies to distribute information to the market as a whole and not to selected investment firms, analysts, or investors; a means of distributing to the market in a fair and open fashion the financial reports and pending and evolving issues of publicly traded company. 10-K Form - Annual report filed with the SEC; required of all 1934 Act firms. 10-Q Form - Quarterly report filed with the SEC; required of all 1934 Act firms. 8-K Form - A filing required by the SEC under the 1934 Securities Act; an 8-K is filed by a registered company within ten days of a significant or material event affecting the company (e.g., a dividend being suspended). A copyright holder has no right to control the reproduction, distribution, public performances, derivative works and public displays of the created work - FALSE A proxy statement containing required disclosures and proxy materials must be sent to the SEC before they are sent to shareholders. - TRUE A psychotherapist received insider information from a senior executive at Martin Marietta, that it was about to merge with Lockheed Martin. Notice of the merger was not yet public and the therapist bought call options a. This is not insider trading because the information was not from an insider. b. The therapist violated section 10(b). c. The therapist was not liable because he was not an insider. d. A and c above. - b. The therapist violated section 10(b). A seller of stock has information that is not generally known to the public but does not disclose this information to the buyer before or during the sale of securities. a. There is no violation because there is no duty to disclose the information.b. This violates 10 (b) of the Securities Exchange Act of 1934. c. This is a violation of the Securities Act of 1933. d. All of the above. - b. This violates 10 (b) of the Securities Exchange Act of 1934. Accredited investors include a. A director, executive officer or general partner of the issuer. b. A person who purchases at least $150,000 of the securities being offered c. Natural persons with a net worth over $1 million d. A natural person with an individual income over $200,000 within the last 2 years or $300,000 per couple. e. All of the above. - e. All of the above. Advances - In partnerships, loans by the partners to the partnership; makes the partner a creditor of the partnership. All securities traded on national exchanges are regulated under the Securities Act of 1933. - FALSE All sellers of securities must complete certain filing requirements before the securities may be sold unless an exemption applies. - TRUE Alter Ego Theory - Theory used for disregarding the corporate protection of limited liability for shareholders; results when individuals treat the corporation's properties and accounts as their own and fail to follow corporate formalities. An issuer of securities meets which of the following qualifications for the intrastate offering exemption a. The investors must all be residents of the same state. b. The issuer has 80% of its assets in the state; 80% of operating income is from the state; and 80% of the proceeds of the sale are used on operations within the state. c. Both a and b. d. None of the above. - c. Both a and b