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:

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Conveyed or made known one's thoughts, feelings, or ideas through words, actions, or art.

Dormant

In a state of temporary inactivity or rest, with the potential to awaken or activate.

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Units of heredity made up of DNA that act as instructions to make molecules called proteins, impacting an organism's development and functioning.

Environmental Events

Occurrences or incidents in the natural world that can influence behavior and mental processes.