Space Trips Inc

question 58

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. The firm is charged with violating the Securities Act of 1933. Its best defense is​

• A) ​the investors were not aware of the misrepresentations.
• B) ​the issuer reasonably believed the misstatements were true.
• C) ​the offering was made available to the general public.
• D) ​the untrue statements were not material.

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Definitions:

Social Capital

The networks of relationships among people who live and work in a particular society, enabling that society to function effectively.

Tastefully Use

To employ or apply something in a manner that is aesthetically pleasing, respectful, or appropriate for the context.

Basic Income

A socioeconomic policy of providing all citizens with a regular, unconditional sum of money, regardless of employment status or other income.

Large Inequalities

Substantial discrepancies in income, wealth, access to resources, and quality of life among different populations or groups within a society.