Drilling Tools,Inc

question 57

Multiple Choice

Drilling Tools,Inc.,wants to make an initial public offering of securities. Drilling Tools believes that it qualifies for an exemption under Regulation A from the full registration requirement of the federal Securities Act of 1933.
-If Drilling Tools is exempt from the federal registration requirement,Drilling Tools is

• A)automatically exempt from any state registration requirement.
• B)not subject to any state securities laws.
• C)not necessarily exempt under a state registration requirement.
• D)automatically subject to all state registration requirements.

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Definitions:

Reasonably Necessary

A legal standard indicating actions or measures needed to achieve a particular purpose without being excessive or impractical.

Injury

Physical harm or damage to an individual's body, or psychological harm to an individual's mental state.

Mens Rea

A legal principle that refers to the mental state a person must be in while committing a crime for it to be intentional.

Prison Sentence

The period of time a person is legally required to spend in prison as punishment for committing a crime.