In the Event That the SEC Staff Believes That a Prospectus

question 419

Multiple Choice

In the event that the SEC staff believes that a prospectus that has been submitted for review does not adequately explain the high-risk factors of an offering, it can:

• A) do nothing so long as the required elements have been provided
• B) require shelf registration proceedings to begin
• C) obtain a Commission order barring the sale of the security
• D) obtain a federal court order barring the sale of the security
• E) none of the other choices

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Definitions:

Intermittent Reinforcement

A conditioning schedule where a response is only sometimes reinforced, leading to more resistant and persistent behavior patterns.

Resistance to Extinction

The persistence of a learned behavior even after reinforcement is no longer given.

Delayed Reinforcement

A method in behavior psychology where a reward or punishment is given some time after the desired or undesired behavior, which can impact the effectiveness of the reinforcement.

Whistle-blowers

Individuals who expose wrongful, unethical, or illegal activities occurring within an organization to the public or to those in positions of authority.