Techno Is Planning a Security Offering Under Regulation D,Rule 506

question 32

Multiple Choice

Techno is planning a security offering under Regulation D,Rule 506.Under this rule,Techno can

• A)offer up to $5 million in securities over 12 months.
• B)offer up to $1 million in securities over 12 months.
• C)can offer an unlimited amount of securities.
• D)can only offer an amount equal to twice its initial capitalization.

---

Definitions:

Actuarial Error

Mistakes in the calculations or assumptions made by actuaries, which can affect insurance premiums, pension plans, and other financial assessments.

Consumption Smoothing

An economic concept that describes how individuals attempt to achieve a stable level of consumption over their lifetime, regardless of fluctuations in income.

Defined Benefit Pension

A type of pension plan where an employer promises a specified monthly benefit upon retirement, which is predetermined by a formula based on the employee's earnings history, tenure of service, and age.

Defined Contribution Plan

A retirement plan where contributions are defined, but the eventual payout depends on the investment's success.