Fact Pattern 37-1

question 7

Multiple Choice

Fact Pattern 37-1
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 37-1. 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:

Vaccine

Any substance for prevention of a disease.

Artificial Immunity

Immunity acquired through medical interventions, such as vaccinations, as opposed to natural immunity obtained through exposure to pathogens.

Hepatitis B

Acute infection of the liver transmitted through blood or body fluids.

Sexual Contact

Any form of physical interaction that is sexual in nature, including kissing, touching, or intercourse.