The Klodhoffer Corporation Has Assets Amounting to $2,000,000 and Needs

question 85

Essay

The Klodhoffer Corporation has assets amounting to $2,000,000 and needs additional capital to finance expansion of its marketing operation.The board of directors decides to promote an issue of $500,000 of common stock in order to raise capital.At the time the stock is issued, Klodhoffer has 250 shareholders owning common stock.If Klodhoffer is to trade the stock over the counter, does it need to register with the SEC?

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Definitions:

Illusory Correlation

The perception of a relationship between two variables when none actually exists, often due to cognitive biases.

Lesbians

Women who are emotionally, romantically, and/or physically attracted to other women.

AIDS

Acquired Immunodeficiency Syndrome, a life-threatening condition caused by the human immunodeficiency virus (HIV), which severely damages the immune system.

Illusory Correlation

A cognitive anitr that describes when people falsely believe that two variables, such as events or actions, are related despite a lack of evidence.