Question 1

Flo,a salesperson for Gear Oil Corporation,learns that the firm will increase the dividend it pays to shareholders.She buys 10,000 shares of company stock.When the dividend is announced to the public and the price of the stock increases,she sells his shares for a profit.She would not be liable for insider trading if the information about the dividend was​

Accepted Answer

A)  material when she sold the stock.
B)  available to the public after she bought the stock.
C)  available to the public before she bought the stock.
D)  forward-looking when she bought the stock.E) All of the above
F) A) and B)

Question 2

Online crowdfunding can be exempt from the registration requirements.

Accepted Answer

A) True 
 B)False

Question 3

The Securities and Exchange Commission has implemented no new regulations since the Securities Exchange Act.

Accepted Answer

A) True 
 B)False

Question 4

Boats & Ships Corporation is a public company,which Colorado regulates and in which Dennis invests.The Sarbanes-Oxley Act of 202 introduced direct federal corporate governance requirements to​

Accepted Answer

A)  public companies.
B)  private investors.
C)  state regulators.
D)  the Securities and Exchange Commission.E) B) and C)
F) C) and D)

Question 5

Food Service Corporation,and its officers,directors,and shareholders,buy and sell securities.Section 10(b) of the Securities Exchange Act of 1934 applies to the purchase or sale of a security​

Accepted Answer

A)  only by an investment company.
B)  only involving short-swing profits.
C)  only involving a tipper and tippee.
D)  in almost any circumstances.E) B) and C)
F) None of the above

Question 6

Forward-looking forecasts that turn out to be wrong can be protected against liability for securities fraud if they include "meaningful cautionary statements."​

Accepted Answer

A) True 
 B)False

Question 7

Most securities cannot be resold without registration.

Accepted Answer

A) True 
 B)False

Question 8

Medico Corporation is a public company whose shares are traded in public securities markets.Medico's officers want to set up and maintain a system of "good corporate governance." What is "corporate governance"? What is its practical significance? What,at a minimum,should a "good" system of corporate governance include?​

Accepted Answer

Corporate governance is the relationship...

Question 9

An insider must actually use inside information in connection with the purchase and sale of securities to violate Section 16(b)of the Securities Exchange Act of 1934.

Accepted Answer

A) True 
 B)False

Question 10

Most private,small-business,noninvestment company offers of securities are exempt from the registration requirements.

Accepted Answer

A) True 
 B)False

Question 11

State corporation statues set up the legal framework for corporate governance.

Accepted Answer

A) True 
 B)False

Question 12

Brian,the chief executive officer of Chairs & Tables,Inc. ,intentionally understates the amount of the firm's debts in information provided to investors as part of an issue of stock.Darla buys the stock and suffers a loss.Brian may be subject to​

Accepted Answer

A)  government prosecution and a private investor's suit.
B)  negative publicity but no criminal prosecution or civil suit.
C)  only government prosecution.
D)  only the private investor's suit.E) None of the above
F) B) and C)

Exam 28: Investor Protection and Corporate Governance

The Securities and Exchange Commission has implemented no new regulations since the Securities Exchange Act.

Correct Answer
verified

Most private,small-business,noninvestment company offers of securities are exempt from the registration requirements.

Correct Answer
verified

Correct Answer
verified
Corporate governance is the relationship...
View Answer

An insider must actually use inside information in connection with the purchase and sale of securities to violate Section 16(b)of the Securities Exchange Act of 1934.

Correct Answer
verified

Boats & Ships Corporation is a public company,which Colorado regulates and in which Dennis invests.The Sarbanes-Oxley Act of 202 introduced direct federal corporate governance requirements to

Correct Answer
verified

Brian,the chief executive officer of Chairs & Tables,Inc. ,intentionally understates the amount of the firm's debts in information provided to investors as part of an issue of stock.Darla buys the stock and suffers a loss.Brian may be subject to

Correct Answer
verified

Food Service Corporation,and its officers,directors,and shareholders,buy and sell securities.Section 10(b) of the Securities Exchange Act of 1934 applies to the purchase or sale of a security

Correct Answer
verified

Forward-looking forecasts that turn out to be wrong can be protected against liability for securities fraud if they include "meaningful cautionary statements."

Correct Answer
verified

Most securities cannot be resold without registration.

Correct Answer
verified

Correct Answer
verified

State corporation statues set up the legal framework for corporate governance.

Correct Answer
verified

Online crowdfunding can be exempt from the registration requirements.

Correct Answer
verified

Exam 28: Investor Protection and Corporate Governance

The Securities and Exchange Commission has implemented no new regulations since the Securities Exchange Act.

Correct AnswerverifiedShow Answer

Most private,small-business,noninvestment company offers of securities are exempt from the registration requirements.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedCorporate governance is the relationship...View AnswerShow Answer

An insider must actually use inside information in connection with the purchase and sale of securities to violate Section 16(b)of the Securities Exchange Act of 1934.

Correct AnswerverifiedShow Answer

Boats & Ships Corporation is a public company,which Colorado regulates and in which Dennis invests.The Sarbanes-Oxley Act of 202 introduced direct federal corporate governance requirements to​

Correct AnswerverifiedShow Answer

Brian,the chief executive officer of Chairs & Tables,Inc. ,intentionally understates the amount of the firm's debts in information provided to investors as part of an issue of stock.Darla buys the stock and suffers a loss.Brian may be subject to​

Correct AnswerverifiedShow Answer

Food Service Corporation,and its officers,directors,and shareholders,buy and sell securities.Section 10(b) of the Securities Exchange Act of 1934 applies to the purchase or sale of a security​

Correct AnswerverifiedShow Answer

Forward-looking forecasts that turn out to be wrong can be protected against liability for securities fraud if they include "meaningful cautionary statements."​

Correct AnswerverifiedShow Answer

Most securities cannot be resold without registration.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

State corporation statues set up the legal framework for corporate governance.

Correct AnswerverifiedShow Answer

Online crowdfunding can be exempt from the registration requirements.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Corporate governance is the relationship...
View Answer

Correct Answer
verified

Boats & Ships Corporation is a public company,which Colorado regulates and in which Dennis invests.The Sarbanes-Oxley Act of 202 introduced direct federal corporate governance requirements to

Correct Answer
verified

Brian,the chief executive officer of Chairs & Tables,Inc. ,intentionally understates the amount of the firm's debts in information provided to investors as part of an issue of stock.Darla buys the stock and suffers a loss.Brian may be subject to

Correct Answer
verified

Food Service Corporation,and its officers,directors,and shareholders,buy and sell securities.Section 10(b) of the Securities Exchange Act of 1934 applies to the purchase or sale of a security

Correct Answer
verified

Forward-looking forecasts that turn out to be wrong can be protected against liability for securities fraud if they include "meaningful cautionary statements."

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified