P Holds Stock in an S Corporation as Custodian for Her

question 20

True/False

P holds stock in an S corporation as custodian for her five minor children.For purposes of counting shareholders, the entire family is one shareholder.

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Definitions:

Rule 10b-5

Rule 10b-5, under the United States Securities Exchange Act of 1934, is a regulation prohibiting fraudulent practices in securities trading, including misrepresentation and insider trading.

Insider Information

Confidential information about a company or its securities that has not been made public and that could provide a financial advantage in the market.

Plain English TERM SHEET

A document outlining the key terms and conditions of an investment, written in clear, straightforward language.

Tender Offers

Public, open proposals by an entity or individual to purchase a substantial percentage of a company's shares or bonds at a specified price, often in an effort to gain control of the company.