BLAW 3310 Final Exam (Miller) Questions and Answers
Question 1
Under Regulation D, you can solicit funds for up to ___ and not need to file a RegistrationStatement before receiving
funding
Correct Answer
$1,000,000
Question 2
Issuance of new shares of stock by a start-up company is an example of
Correct Answer
Equity Financing
Question 3
Vronsky is an executive at ABC Company. On January 1, 2022, he was given options byABC allowing him to buy up to 1,000
shares of ABC shares at any time during 2022 at aprice of $ 30 per share. (On the day he was given these options, the
market price of ABCshares was $20 per share.) On December 1, 2022, the market share price was $ 38, andJohn exercised
his option to buy all 1,000 shares on that date. What was his profit?
Correct Answer
$8,000
Page 1 of 37
,Question 4
blue sky laws
Correct Answer
name given to state laws that regulate the offer and sale of securities.
Question 5
stock
Correct Answer
A share of ownership in a corporation.
Question 6
bonds
Correct Answer
A certificate issued by a government or private company which promises to pay back with interest the money borrowed
from the buyer of the certificate: The city issued bonds to raise money for putting in new sewers.
Question 7
equity financing
Correct Answer
when a business obtains funds by issuing ownership shares to investors in the organization.
Page 2 of 37
,Question 8
Securities and Exchange Commission (SEC)
Correct Answer
a regulated market where securities, such as stocks, are traded.
Question 9
SEC disclosure requirements
Correct Answer
publicly owned companies to disclose certain types of business and financial data on a regular basis to the SEC and to
the company's stockholders.
Question 10
registration statement
Correct Answer
in securities law, the financial information that must be filed with the Securities and Exchange Commission for review
prior to the sale of securities to the public.
Question 11
prospectus
Correct Answer
under securities law, a pamphlet that must be produced for distribution to prospective
Page 3 of 37
, Question 12
exemptions from registration
Correct Answer
below $ 5.0M in funds solicited over 12 months - in securities law, provisions that allow certain securities to be sold
without meeting the usual registration requirements with the Securities and Exchange Commission; does not exempt the
securities from other aspects of securities laws.
well known seasoned issuers
Question 13
well-known seasoned issuers (WKSI)
Correct Answer
most securities issued by these
-previously have offered $1B in debt securities
-or have a public equity market capitalization of at least $700M
-can file a registration the day a new offering is available
-can shelf register (k=continually update the prospectus online)
-can sell at any time within the next 3 years
Question 14
Tender offers
Correct Answer
an offer open to current stockholders to buy a stock at a certain price; offer may be contingent upon receiving a certain
amount of stock before any purchase is completed or may be an open offer; a method used to obtain enough stock to
control a corporation
Page 4 of 37
Question 1
Under Regulation D, you can solicit funds for up to ___ and not need to file a RegistrationStatement before receiving
funding
Correct Answer
$1,000,000
Question 2
Issuance of new shares of stock by a start-up company is an example of
Correct Answer
Equity Financing
Question 3
Vronsky is an executive at ABC Company. On January 1, 2022, he was given options byABC allowing him to buy up to 1,000
shares of ABC shares at any time during 2022 at aprice of $ 30 per share. (On the day he was given these options, the
market price of ABCshares was $20 per share.) On December 1, 2022, the market share price was $ 38, andJohn exercised
his option to buy all 1,000 shares on that date. What was his profit?
Correct Answer
$8,000
Page 1 of 37
,Question 4
blue sky laws
Correct Answer
name given to state laws that regulate the offer and sale of securities.
Question 5
stock
Correct Answer
A share of ownership in a corporation.
Question 6
bonds
Correct Answer
A certificate issued by a government or private company which promises to pay back with interest the money borrowed
from the buyer of the certificate: The city issued bonds to raise money for putting in new sewers.
Question 7
equity financing
Correct Answer
when a business obtains funds by issuing ownership shares to investors in the organization.
Page 2 of 37
,Question 8
Securities and Exchange Commission (SEC)
Correct Answer
a regulated market where securities, such as stocks, are traded.
Question 9
SEC disclosure requirements
Correct Answer
publicly owned companies to disclose certain types of business and financial data on a regular basis to the SEC and to
the company's stockholders.
Question 10
registration statement
Correct Answer
in securities law, the financial information that must be filed with the Securities and Exchange Commission for review
prior to the sale of securities to the public.
Question 11
prospectus
Correct Answer
under securities law, a pamphlet that must be produced for distribution to prospective
Page 3 of 37
, Question 12
exemptions from registration
Correct Answer
below $ 5.0M in funds solicited over 12 months - in securities law, provisions that allow certain securities to be sold
without meeting the usual registration requirements with the Securities and Exchange Commission; does not exempt the
securities from other aspects of securities laws.
well known seasoned issuers
Question 13
well-known seasoned issuers (WKSI)
Correct Answer
most securities issued by these
-previously have offered $1B in debt securities
-or have a public equity market capitalization of at least $700M
-can file a registration the day a new offering is available
-can shelf register (k=continually update the prospectus online)
-can sell at any time within the next 3 years
Question 14
Tender offers
Correct Answer
an offer open to current stockholders to buy a stock at a certain price; offer may be contingent upon receiving a certain
amount of stock before any purchase is completed or may be an open offer; a method used to obtain enough stock to
control a corporation
Page 4 of 37
