CEP LEVEL 1 QUESTIONS WITH 100%
CORRECT ANSWERS!!
1 of 40
Term
When is the grant of an equity award required to be reported for
Section 16 officers, and on which form?
Give this one a try later!
The expiration or cancellation of a stock option
Only by the beneficial owner
, Within 2 business days on Form 4
ISOs are governed by the specific requirements prescribed in Section 422 of the
Code and the general requirements for statutory options set out in Sections 421
and 424 of the Code. Taxation of NSOs is governed by Section 83 of the
code.
Deferred compensation is governed by Section 409 of the Code. Employee
stock purchase plans are governed by Section 423 of the Code.
Don't know?
2 of 40
Term
The Exchange Act rule that prohibits trading in securities by a person
having "material non-public" information is:
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A summary of the plan terms,
description of the options' tax She must report both the exercise
consequences, and other and the sale of the shares she used
information to help employees to effect the swap on a Form 4
decide whether to exercise options.
He is a Section 16 insider Rule 10b-5
Don't know?
, 3 of 40
Term
A publicly traded corporation grants its president the right to
purchase 10,000 shares of restricted stock at $15 per share. The grant
is approved by the full board of directors. On what form must
the
grant reported?
Give this one a try later!
may be issued by the employer as a reminder to ensure compliance with
certain non-exempt issuer-related equity transactions subsequent to
employment
300. Because the stock is actually issued for restricted stock awards at the time
of grant, all shares are eligible for voting even before they vest. Restricted stock
units are not settled in issued stock until the units vest, so no voting rights attach
to the units.
16 officers must file Form 4 when their beneficial ownership of company
securities changes. This includes an award of restricted stock to a
corporate insider
The purchases are not required to be reported, but the insider's holdings should
be updated to reflect the purchases on the next form filed by the insider
Don't know?
4 of 40
Term
, Which of the following is a matter of corporate governance?
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All directors and certain key
Shareholder approval executive officers
It freezes the compensation
Federal Reserve
element of an award and
accelerates taxation
Don't know?
5 of 40
Term
Rule 144 includes:
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$1 million, 15% of the total assets of the issuer, 15% of the outstanding amount of
the class securities being offered and sold in reliance on Rule 701
The shares are subject to Rule 144
CORRECT ANSWERS!!
1 of 40
Term
When is the grant of an equity award required to be reported for
Section 16 officers, and on which form?
Give this one a try later!
The expiration or cancellation of a stock option
Only by the beneficial owner
, Within 2 business days on Form 4
ISOs are governed by the specific requirements prescribed in Section 422 of the
Code and the general requirements for statutory options set out in Sections 421
and 424 of the Code. Taxation of NSOs is governed by Section 83 of the
code.
Deferred compensation is governed by Section 409 of the Code. Employee
stock purchase plans are governed by Section 423 of the Code.
Don't know?
2 of 40
Term
The Exchange Act rule that prohibits trading in securities by a person
having "material non-public" information is:
Give this one a try later!
A summary of the plan terms,
description of the options' tax She must report both the exercise
consequences, and other and the sale of the shares she used
information to help employees to effect the swap on a Form 4
decide whether to exercise options.
He is a Section 16 insider Rule 10b-5
Don't know?
, 3 of 40
Term
A publicly traded corporation grants its president the right to
purchase 10,000 shares of restricted stock at $15 per share. The grant
is approved by the full board of directors. On what form must
the
grant reported?
Give this one a try later!
may be issued by the employer as a reminder to ensure compliance with
certain non-exempt issuer-related equity transactions subsequent to
employment
300. Because the stock is actually issued for restricted stock awards at the time
of grant, all shares are eligible for voting even before they vest. Restricted stock
units are not settled in issued stock until the units vest, so no voting rights attach
to the units.
16 officers must file Form 4 when their beneficial ownership of company
securities changes. This includes an award of restricted stock to a
corporate insider
The purchases are not required to be reported, but the insider's holdings should
be updated to reflect the purchases on the next form filed by the insider
Don't know?
4 of 40
Term
, Which of the following is a matter of corporate governance?
Give this one a try later!
All directors and certain key
Shareholder approval executive officers
It freezes the compensation
Federal Reserve
element of an award and
accelerates taxation
Don't know?
5 of 40
Term
Rule 144 includes:
Give this one a try later!
$1 million, 15% of the total assets of the issuer, 15% of the outstanding amount of
the class securities being offered and sold in reliance on Rule 701
The shares are subject to Rule 144
