Which of the Following Is True Regarding Isaiah's Sale of Securities

question 17

Multiple Choice

Which of the following is true regarding Isaiah's sale of securities before the effective date of registration?

• A)He will be able to avoid liability if he can establish that the investors who purchased stock early were aware that the securities were sold before the effective date of registration.
• B)It is not a violation of the securities laws.
• C)He will be able to avoid liability if he can establish that the sales before the effective date did not directly result in any losses to investors.
• D)He will almost certainly be liable because the 1933 act provides no defenses for that violation.
• E)He will be able to avoid liability if he can establish the due diligence defense.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, with holders typically having voting rights and potentially receiving dividends.

Balance Sheet

An exposition on a company's assets, its financial responsibilities, and the equity owned by shareholders, documented at a fixed point in time.

Total Revenue

The overall amount of money generated by a company from its business activities, before any expenses are subtracted.

Total Expenses

The sum of all costs and expenses incurred by a business during a given period, including operating and non-operating expenses.