Fact Pattern 7-1 College Bound, Inc., Markets Test and Study Prep Materials and Prep

question 51

Multiple Choice

Fact Pattern 7-1
College Bound, Inc., markets test and study prep materials and courses. College Bound wants to make an initial public offering of securities. The firm believes that it qualifies for an exemption under Regulation A from the full registration requirement of the Securities Act of 1933.
-Refer to Fact Pattern 7-1. College Bound decides to sell its new securities via the Internet. Most likely, this offering​

• A) ​will avoid high expenses.
• B) ​is an investment scam.
• C) ​is a Ponzi scheme.
• D) ​constitutes insider trading.

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Definitions:

Brain Chemistry

Brain chemistry refers to the complex mixture of chemicals, including neurotransmitters and hormones, that govern mood, behavior, and cognitive function in the brain.

Threatened

A state or condition in which there is a perception of imminent harm or danger.

Substance Abuse

The harmful use of substances, including drugs and alcohol, leading to addiction or other significant impairment or distress.

Child Sexual Abuse

Involves engaging a child in sexual activities that the child cannot comprehend, for which the child is not developmentally prepared and cannot give consent, or that violate the laws or social taboos of society.