Which of the Following Is an Example of a Transaction

question 58

Multiple Choice

Which of the following is an example of a transaction that is exempt from the registration requirements of the 1933 Act?

• A)Securities issued by municipal governments in the United States and offered solely to banks.
• B)Securities issued by nonprofit charitable organizations and offered solely to institutional investors.
• C)Securities issued by banks and offered solely to investors sophisticated in investment matters.
• D)Securities issued by for-profit corporations and offered solely to intrastate investors.

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Definitions:

First-Degree Price Discrimination

Practice of charging each customer her reservation price.

Marginal Revenue

The increase in revenue resulting from the sale of one additional unit of a product or service.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.

Intertemporal Price Discrimination

A pricing strategy where a seller changes prices over time for the same product or service to maximize profits by taking advantage of differences in consumers' willingness to pay at different times.