Which of the Following Transactions of Sale of Securities Would

question 5

Multiple Choice

Which of the following transactions of sale of securities would be exempt from the registration requirement?

• A)Transactions made by an issuer.
• B)Transactions made by an underwriter.
• C)Offerings of small business investment companies not made in accordance with rules and regulations of the Securities and Exchange Commission.
• D)Private offerings to a limited number of people who do not propose to redistribute their securities.
• E)Securities of municipal,state,federal and other government instrumentalities,of charitable institutions,of banks,and of carriers not subject to the Interstate Commerce Act.

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Definitions:

Liquidation

The process of closing a business and distributing its assets to claimants, often involving selling off assets to pay off creditors and then returning any remaining assets to the shareholders.

Redeem

To recover ownership of something by paying off a debt or fulfilling an obligation.

Residual Assets

The remaining assets that belong to shareholders after a company has paid all its debts and obligations.

Dissolution

The act of dissolving or ending an entity, such as the termination of a corporation or partnership.