Under the 1934 Act,an Issuer Must Register with the SEC

question 30

Multiple Choice

Under the 1934 Act,an issuer must register with the SEC if

• A)it has not completed a public offering under the 1933 Act.
• B)its securities are not going to be traded on a national exchange.
• C)it will not be providing investors with a prospectus.
• D)it has at least 2,000 shareholders and total assets that exceed $10 million.

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Definitions:

Credit Sales

Sales made on credit, allowing customers to purchase goods or services and pay for them at a later date.

Loss from Sale

An unfavorable difference between the selling price of an asset and its book value, leading to a financial loss for the entity.

Assets

Resources owned or controlled by a business, expected to bring future economic benefits.

Liabilities

Liabilities or monetary duties a firm has towards outside entities.