A Security Is Sold to the Public Under a Private

question 398

Multiple Choice

A security is sold to the public under a private placement exemption. Later a suit is filed under the federal securities law claiming securities fraud. This suit will:

• A) fail since the security is not subject to the federal law since it was sold under an exemption
• B) fail since the security is not subject to the federal law since it was sold under an exemption⎯unless there were subsequent financial disclosures to the SEC
• C) fail since the security is not subject to the federal law since it was sold under an exemption⎯unless a private common law fraud suit has already prevailed
• D) be allowed only if there was a blue sky law violation
• E) none of the other choices

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Definitions:

Parenteral Nutrition

Feeding a person intravenously, bypassing the usual process of eating and digestion.

Intravenous Crystalloids

Solutions containing water and electrolytes administered into a vein to replace lost fluids and maintain fluid balance.

Bowel Sounds

The noises made by the movement of the intestines as they push food through, often checked by health care professionals to assess gut activity.

Colloid Osmotic Pressure

The pressure exerted by plasma proteins on the capillary walls, which helps maintain the balance of fluid between the circulatory system and tissues.