Fact Pattern 30-1 Drilling Tools, Inc., Wants to Make an Initial Public Offering

question 40

Multiple Choice

Fact Pattern 30-1
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.
-Refer to Fact Pattern 30-1. Drilling Tools decides to sell its new securities via the Internet. This offering

• A)will avoid the payment of commissions to brokers or underwriters.
• B)is an investment scam.
• C)is a Ponzi scheme.
• D)constitutes insider trading.

---

Definitions:

Human Impulses

Innate inclinations or promptings that drive individuals to think or act in certain ways without conscious deliberation.

Cognitive Equilibrium

A state of mental balance where individuals' inner schemas effectively handle new information through assimilation and accommodation, as proposed by Piaget.

Cognitive Development

The process by which an individual perceives, thinks, and gains understanding of their world through the integration and coordination of sensory experiences with previous knowledge and learning.

Reinterpretation

involves the process of understanding or presenting something in a new or different way, often leading to a shift in perception or meaning.