Which One of the Following Can Be Assumed When the SEC

question 45

Multiple Choice

Which one of the following can be assumed when the SEC approves an IPO registration?

• A)The securities offering will provide value to the shareholders.
• B)The issuer is financially sound.
• C)The issuer will remain solvent.
• D)All rules have been followed to allow for full disclosure of information.
• E)The stock price is set at a level which will allow shareholders to earn a positive rate of return.

---

Definitions:

Mistake Of Law

An error arising from misunderstanding or ignorance of legal principles, which can affect the validity of a contract.

Legal Actions

Legal actions are formal steps taken within the judicial system to enforce or defend rights, often involving lawsuits or proceedings in court.

Duress

A situation where an individual performs an act as a result of violence, threat, or other pressure against them.

Economic Duress

Refers to a situation where one party compels another to agree to a contract under threats or pressure that deprive the victim of their free will.