The SEC Allows for a Private Placement Exemption Because

question 286

Multiple Choice

The SEC allows for a private placement exemption because:

• A) registration of "blue chip" securities is not necessary
• B) small investors have insufficient information about the background of such offerings, so they need additional protection
• C) small issuers need a break in the costs of the process to be able to compete effectively with large security issues
• D) issuers need greater flexibility when dealing with large numbers of small investors
• E) none of the other choices

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Definitions:

Natural Resources

Naturally occurring materials such as minerals, forests, water, and fertile land that can be used for economic improvement and are considered valuable in their relatively unmodified (natural) form.

American Settlement

The establishment of communities in the United States by immigrants or settlers.

Fourteenth Amendment

An amendment to the U.S. Constitution, ratified in 1868, granting citizenship to all persons born or naturalized in the United States, including former slaves, and providing all citizens with equal protection under the laws.

Chinese Immigrants

Individuals from China who have relocated to another country, historically significant in the 19th and early 20th centuries for their roles in labor, particularly in the United States during the California Gold Rush and the construction of the Transcontinental Railroad.