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:

Price-fixing

An illegal agreement among competitors to fix prices, set production levels, or divide markets, to ensure mutual economic benefit.

Antitrust Law

Legislation designed to promote competition and regulate and prevent monopolies or other practices that restrain trade.

Legal Cartel Theory

A concept that explores the legality and economic implications of a group of firms controlling the market by regulating prices and output like a cartel.

Occupational Licensing

The laws of state or local governments that require that a worker satisfy certain specified requirements and obtain a license from a licensing board before engaging in a particular occupation.