Harmer Company Has Filed a Registration Statement Under the 1933

question 82

Essay

Harmer Company has filed a registration statement under the 1933 Act for purposes of issuing $5,000,000 of debentures.The registration statement has not been declared effective.Harmer wants to issue a press release concerning its plans to expand its operations.It also wants to telephone several large investors and tell them why they should buy the debentures.Will these activities cause Harmer to violate Section 5 of the Securities Act?

---

Definitions:

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact through controlled observation.

Physical Mechanisms

Processes or functions within a physical system that bring about a particular outcome or effect.

Empirical Reasoning

That process of thinking that proceeds from premises describing interpersonally verifiable experiences in order to support or to disconfirm hypotheses, which, in turn, are intended to explain and predict phenomena. Empirical reasoning is fundamentally inductive, self-corrective, and open to scrutiny and independent verification by the entire scientific community.

Instruments

Tools or devices designed for a specific purpose, especially used for scientific work, measurements, or music.