The SEC Requires the Sale of a Private Placement to Be

question 19

True/False

The SEC requires the sale of a private placement to be limited to a small number of knowledgeable investors.

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Definitions:

Consolidated Net Income

The total net income of a parent company and its subsidiaries, after intercompany transactions have been eliminated.

Dividends

When a corporation distributes its profits to the shareholders, often as profit payments.

Operating Activities

Activities that constitute the primary or main activities of an entity, including cash flows from producing and delivering goods and providing services.

Noncontrolling Interest

An ownership interest in a company that is less than 50%, usually reflected as a separate component of equity on a parent company’s balance sheet, representing the portion of its subsidiaries not owned by the parent.