Fact Pattern 31-1

question 54

Multiple Choice

Fact Pattern 31-1
Fresh Cream, Inc., wants to make an initial public offering of securities. Fresh believes that it qualifies for an exemption under Regulation A from the full registration requirement of the federal Securities Act of 1933.
-Refer to Fact Pattern 31-1. Fresh decides to sell its new securities via the Internet. This offering

• A) will avoid the payment of commissions to brokers or underwriters.
• B) is an investment scam.
• C) is a Ponzi scheme.
• D) constitutes insider trading.

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Definitions:

Debate

A formal or informal discussion or argument involving opposing viewpoints on a particular topic or issue.

Overview

A general summary or review of a subject, encompassing the main points, principles, or elements.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Surrealists

A group of artists and writers in the 20th century who explored the unconscious mind, aiming to revolutionize human experience and expression through their avant-garde work.