If a Company Has Assets of Over $10 Million but Trades

question 48

Multiple Choice

If a company has assets of over $10 million but trades its stock over the counter, it is nevertheless required to comply with the 1934 Act if it has:

• A) 500 or more shareholders.
• B) one class of stock with 500 or more shareholders.
• C) 500 or more shares of stock outstanding.
• D) 500 different investors.

---

Definitions:

Group's Cohesion

The strength of the relationships linking the members of a group to one another and to the group itself.

Major Problem

A significant or complex issue that requires considerable effort or resources to solve.

Synergy

The interaction or cooperation of two or more organizations, substances, or other agents to produce a combined effect greater than the sum of their separate effects.

Close-ended Groups

Groups that have a fixed membership and do not allow new members to join after the group has started.