Fresh Cream,Inc

question 63

Multiple Choice

Fresh Cream,Inc.,wants to make an initial public offering of securi-ties.Fresh 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 26-1.Fresh 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.

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Definitions:

Eyes

Organ of vision in humans and other organisms that allows the perception of light, shapes, and colors through a complex process of light detection and signal transmission to the brain.

Compound Eyes

Eyes that consist of thousands of small, individual photoreceptor units, common in insects and crustaceans, providing a wide angle of vision.

Insect

A small arthropod animal that has six legs and, generally, one or two pairs of wings.