While Section 4(a)2 Does Not Limit the Dollar Amount of an Offering

question 78

Multiple Choice

While Section 4(a) 2 does not limit the dollar amount of an offering, the interpretation of the law has stipulated that the:

• A)investors must be sophisticated
• B)number of investors must be limited to 35
• C)funds must be raised within a 12-month period
• D)offering must be extended to the public, and not only investors who have a relationship with the issuer

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Definitions:

Automated Teller Machine Card

A plastic card linked to a bank account, used at ATMs for transactions such as cash withdrawals, deposits, and balance checks.

Bank Account

A bank account is a financial account maintained by a banking institution in which the deposits, withdrawals, and balances of cash are recorded for the account holder.

Adjustment Costs

The costs associated with holding too little cash.

Carrying Costs

Expenses associated with holding or storing inventory, including warehousing, insurance, tax, and depreciation.