Which ONE of the Following Statements Is True

question 54

Multiple Choice

Which ONE of the following statements is true?

• 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.

---

Definitions:

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a specific price over a certain period of time.

Usury Laws

Regulations governing the maximum interest rate that can be charged on loans, intended to protect borrowers from excessively high rates.

Rent Control

Government-imposed restrictions on the maximum rent that landlords can charge tenants, usually with the aim of making housing more affordable.

Price Ceiling

A price ceiling is a government-imposed limit on how high a price can be charged for a product or service, intended to protect consumers from excessive costs.