Space Trips Inc

question 38

Multiple Choice

Space Trips Inc. files a registration statement with the SEC before making an offering to the general public. The registration contains false, immaterial statements of which the investors are unaware. Space Trips is charged with violating the Securities Act of 1933. Space Trips's best defense is

• A)the investors were not aware of the misrepresentations.
• B)the investor reasonably believed the misstatements were true.
• C)the offering was made available to the general public.
• D)the untrue statements were not material.Fact Pattern 21-2 Eddie, an accountant for Fresh Dairy, Inc., learns of undisclosed company plans to market a new smooth-tasting, fat-free butter.Eddie buys 10,000 shares of Fresh Dairy stock.He reveals the company plans to Giselle, who buys 5,000 shares.Giselle tells Hong, who tells Irwin, each of whom buy 1,000 shares.They know that Giselle got her information from Eddie.When Fresh Dairy publicly announces its new product, Eddie, Giselle, Hong, and Irwin sell their stock for a profit.

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Definitions:

SSD

Solid State Drive, a type of non-volatile storage media that uses flash memory and has no moving parts, offering faster data access and reliability compared to traditional hard drives.

Technical Salesperson

A professional specializing in selling and explaining the technical aspects of a product or service to potential buyers.

Hardware Technology

Refers to the physical components of computers and related devices, including motherboards, CPUs, RAM, and storage devices.

Communicating

The process of exchanging information between entities (such as people, computer systems, or devices) through a common system of symbols, signs, or behavior.