Which of the Following Is a Characteristic of a DPO

question 38

Multiple Choice

Which of the following is a characteristic of a DPO?

• A) It is more expensive and slower than a regular public offering done through an underwriter.
• B) It can be an effective marketing tool because shareholders tend to become more loyal customers.
• C) Setting up a system to permit trades is unnecessary because the purchases are long-term investments.
• D) The issuer can make a DPO only under Rule 147 or Regulation D.
• E) All of the above.

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Definitions:

Consideration

In contract law, it's the value that is exchanged between parties in a contract, making the agreement legally binding.

Agency Relationships

A relationship in which one party (the agent) agrees to act for another party (the principal) in a business transaction.

Ratification

The act of giving formal consent or approval to something, making it officially valid, typically in the context of contracts or agreements.

Agency Relationship

A legal and consensual arrangement where one party, the agent, acts on behalf of another, the principal, in dealings with third parties.