Which of the Following Statements Is False About Marketing Securities

question 15

Multiple Choice

Which of the following statements is false about marketing securities on the internet?

• A)SEC regulations do not apply to online advertising and securities transactions.
• B)The SEC has issued cease-and-desist orders against companies that illegally offered free stock on their websites because they had not registered their stocks with the SEC.
• C)Companies are permitted to sell securities online in an initial public offering IPO).
• D)The SEC maintains a database to help investors access information about IPOs.
• E)Some websites allow customers to buy and sell securities online.

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Definitions:

Operating Activity

Activities that constitute the primary or main activities of an organization, such as sales or services.

Investment In Subsidiary

The purchase of shares or interests in a subsidiary company by a parent company to obtain control or significant influence over the subsidiary's management and operations.

Book Value

The net value of an asset as recorded on the balance sheet, calculated as the asset's cost minus accumulated depreciation.

Affiliate's Debt Instrument

A financial security issued by an affiliate entity, representing a loan made by investors to the affiliate.