If Your Liabilities Are Greater Than the Value of Your

question 4

Multiple Choice

If your liabilities are greater than the value of your assets you are considered

• A)unstable.
• B)bankrupt.
• C)insolvent.
• D)unbalanced.

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Definitions:

Statutory Insiders

Certain large stockholders, executive officers, and directors who are deemed insiders by the Securities Exchange Act of 1934.

Securities Exchange Act

A U.S. law governing the trading of securities, such as stocks and bonds, to protect investors against fraud.

Blue-Sky Laws

State laws in the United States designed to protect investors from securities fraud by regulating the offering and sale of securities to the public.

Interstate Securities

Securities transactions or offerings that occur across state lines, subject to federal laws and regulations.