Which of the Following Statements Is True of PIPE Transactions

question 66

Multiple Choice

Which of the following statements is true of PIPE transactions?

• A) Under federal securities law, they can be resold to investors in the public markets immediately even if they are not registered.
• B) As part of the PIPE contract, the company often agrees to register the restricted securities with the SEC, usually within 90 days of the PIPE closing.
• C) As part of the PIPE contract, the company often agrees to register the restricted securities with the SEC after 90 days of the PIPE closing.
• D) PIPE transactions involving a healthy firm can also be executed without the use of an investment bank but result in a cost increase of 7 to 8 percent of the proceeds.

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Definitions:

Buckley Amendment

Refers to the Family Educational Rights and Privacy Act (FERPA), a federal law that protects the privacy of student education records.

FERPA

(Family Educational Rights and Privacy Act of 1974) affirms the right of all individuals to gain access to their school records, including test records.

Reliability

The degree to which an assessment tool produces stable and consistent results over repeated applications under the same conditions.

Cronbach's Coefficient Alpha

Cronbach's Coefficient Alpha is a statistic used to assess the internal consistency or reliability of a set of scale or test items.