Under the Securities Act of 1933, Subject to Some Exceptions

question 53

Multiple Choice

Under the Securities Act of 1933, subject to some exceptions and limitations, it is unlawful to use the mails or instruments of interstate commerce to sell or offer to sell a security to the public unless

• A) A surety bond sufficient to cover potential liability to investors is obtained and filed with the Securities and Exchange Commission
• B) The offer is made through underwriters qualified to offer the securities on a nationwide basis
• C) A registration statement has been properly filed with the Securities and Exchange Commission, has been found to be acceptable, and is in effect
• D) The Securities and Exchange Commission approves of the financial merit of the offering

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Definitions:

Accumulated Depreciation

Accumulated depreciation represents the total depreciation expense assigned to a fixed asset over its useful life, reducing its book value.

Investments

Assets purchased with the expectation that they will generate income or appreciate in the future.

Owner's Equity

Refers to the residual interest in the assets of a company after deducting liabilities, representing the ownership interest.

Property Plant and Equipment

Durable physical assets that are utilized in running a business and are not meant to be sold.