A Exemption from the Prospectus Requirement Exists for an Issuer

question 23

Multiple Choice

A exemption from the prospectus requirement exists for an issuer where

• A) the purchase is one of a regular series made by an issuer in a security of its own issue.
• B) the purchaser is a bank, buying on its own account.
• C) the purchaser is an individual buying at least $25,000 in market value of one security.
• D) the recipient of the security receives it in satisfaction of a debt owed to it by the issuer.
• E) None of the responses are correct.

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Definitions:

Product

Anything that can be offered to a market to satisfy the want or need of a customer.

Cash Budget

A financial plan that forecasts the cash inflows and outflows over a specific period, typically used to assess liquidity and manage cash effectively.

Budgeted Disbursements

Projected payments planned by a company for various expenses.

Desired Balance

The optimal amount of funds an individual or business aims to maintain in an account.