In the Ninth Circuit Court of Appeals Decision on SEC

question 80

Multiple Choice

In the Ninth Circuit Court of Appeals decision on SEC v. Murphy , all of the following were considerations in determining an offering to be a private placement except :

• A)there must be an arm's length relationship between the issuer of the security and the prospective purchaser
• B)the number of offerees must be limited
• C)the size and the manner of the offering must not indicate widespread solicitation
• D)the offerees must be sophisticated

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Definitions:

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and stability of the financial system.

Excessive Investment

When the level of investment in an economy exceeds what is considered sustainable or optimal, potentially leading to economic imbalances.

Inflationary Recessions

Uncommon scenarios where an economy experiences both inflation—rising prices—and recession, which is a significant decline in economic activity, simultaneously.

Great Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production.