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:

Listener

Someone who actively pays attention to and processes what others are communicating.

Selective Listening

The practice of hearing and responding to certain parts of a conversation while ignoring others, often based on personal biases or interests.

Social Context

The immediate physical and social setting in which people live or in which something happens or develops.

Culture

A complex whole that includes knowledge, beliefs, art, morals, laws, customs, and any other capabilities and habits acquired by humans as members of society.