Flo-Thru Corporation Is Poised to Issue Securities That, Under the Securities

question 46

Multiple Choice

Flo-Thru Corporation is poised to issue securities that, under the Securities Act of 1933, are "exempt." This means that the securities can be sold

• A) on the basis of a material omission or misrepresentation.
• B) on the basis of nonpublic information.
• C) within any six-month period by certain insiders.
• D) without being registered.

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Definitions:

Equity Transaction

Transactions that affect the ownership interest of shareholders in a company, including issues, buybacks, and sale of shares.

Incremental Costs

Costs directly associated with the production of additional units of goods or services.

Net Of Tax

The amount remaining after the effect of taxes has been accounted for.

Contingent Asset

A possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.