Series 79: Chapter 8 Practice Questions

Chapter 8 Practice Questions

1. 1. Which of the following are true of the intrastate offering exemption to the registration requirements of the Securities Act of 1933?
2. I. It is not available for securities that will be sold in more than one state.
3. II. It is not available for offerings of more than $5,000,000.
4. III. It is not available to issuers who derive revenue from more than one state.
5. IV. It is not available for securities that will be offered and sold in multiple states.
6. A. I and II
7. B. III and IV
8. C. I and IV
9. D. II and III
10. 2. Which of the following is not one of the possible conditions that an issuer may meet to qualify for the intrastate offering exemption to the registration requirements of the Securities Act of 1933?
11. A. 80% of its business assets come from within the state
12. B. It does not derive more than 5% of its revenues from outside the United States or its territories.
13. C. It derives at least 80% of its revenue from the state or territory in which it is resident or incorporated.
14. D. 80% of the proceeds are used in-state
15. 3. One of the possible conditions for “doing business within” a state for the Rule 147 offering exemption is, an issuer must derive at least ____ of its revenues from within that state?
16. A. 50%
17. B. 80%
18. C. 25%
19. D. 60%
20. 4. Which of the following is true of a Regulation A offering?
21. A. Sales by insiders are limited to $5 million in a 12-month period
22. B. Sales may be made any time after offering statement is filed with SEC
23. C. The issuer must be organized in the United States or its territories
24. D. The issuer may publish advertisements concerning a proposed offering before an offering statement is filed with the SEC
25. 5. Extra Wriggly Gum plans an offering of securities under Regulation A. Extra Wriggly accordingly prepares a preliminary offering circul