BLAW 3310 FINAL EXAM MILLER ACTUAL
EXAMINATION 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
⫸ Blue Sky Laws Answer: State laws that regulate the offering and sale
of securities for the protection of the public.
⫸ stock Answer: A share of ownership in a corporation.
⫸ bonds Answer: Certificates of debt that carry a promise to buy back
the bonds at a higher price
⫸ equity financing Answer: money raised from within the firm, from
operations or through the sale of ownership in the firm (stock or venture
capital)
⫸ Securities and Exchange Commission Answer: monitors the stock
market and enforces laws regulating the sale of stocks and bonds
⫸ Howey Test Answer: Created by the U.S. Supreme Court; it defines a
security as an investment in a common enterprise that earns profits from
the efforts of others.
, ⫸ SEC disclosure requirements Answer: Stock Option and appreciation
rights
Long-term incentive plans
Pension plan
Stock performance comparison
Compensation committee report
Directors' compensation
Employment contracts and golden parachutes
⫸ registration statement Answer: a long, complex document that firms
must file with the SEC when they sell securities through a public
offering
⫸ prospectus Answer: document issued to possible buyers of a stocks
and bonds outlining the financial condition of the company issuing those
securities
⫸ SEC review and approval Answer: The SEC does not rule on the
merit of an offering; that is, it does not give any opinion about the
likelihood of success of a proposed business. Registration comes into
effect 20 days after it is filed.
⫸ Exemptions from Registration Answer: -USA may exempt BOTH
securities and/or transactions from registration and filing in the state
EXAMINATION 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
⫸ Blue Sky Laws Answer: State laws that regulate the offering and sale
of securities for the protection of the public.
⫸ stock Answer: A share of ownership in a corporation.
⫸ bonds Answer: Certificates of debt that carry a promise to buy back
the bonds at a higher price
⫸ equity financing Answer: money raised from within the firm, from
operations or through the sale of ownership in the firm (stock or venture
capital)
⫸ Securities and Exchange Commission Answer: monitors the stock
market and enforces laws regulating the sale of stocks and bonds
⫸ Howey Test Answer: Created by the U.S. Supreme Court; it defines a
security as an investment in a common enterprise that earns profits from
the efforts of others.
, ⫸ SEC disclosure requirements Answer: Stock Option and appreciation
rights
Long-term incentive plans
Pension plan
Stock performance comparison
Compensation committee report
Directors' compensation
Employment contracts and golden parachutes
⫸ registration statement Answer: a long, complex document that firms
must file with the SEC when they sell securities through a public
offering
⫸ prospectus Answer: document issued to possible buyers of a stocks
and bonds outlining the financial condition of the company issuing those
securities
⫸ SEC review and approval Answer: The SEC does not rule on the
merit of an offering; that is, it does not give any opinion about the
likelihood of success of a proposed business. Registration comes into
effect 20 days after it is filed.
⫸ Exemptions from Registration Answer: -USA may exempt BOTH
securities and/or transactions from registration and filing in the state
