Chapter 8 Practice Questions
1. Which of the following would not be considered a non-exempt issuance of securities?
A. A bank offering CDs to its customers
B. A bank attempting to raise money for expansion by selling shares of ownership that will trade on the Nasdaq
C. A corporation raising money through the sale of its bonds
D. A business with less than $10,000,000 in sales that is offering ownership opportunities through radio advertisements on the local news radio station
2. All of the following would be considered a security except:
A. Publicly traded stock
B. Publicly traded bond
C. A variable annuity
D. A commodities future
3. Which of the following are found on all registration statements?
I. The type of security being issued
II. The quantity of the security being issued
III. A description of the issuer’s business
IV. The contact information of the issuer
A. I and II only
B. II and III
C. I, II, and III
D. I, II, III, and IV
4. When a security has not been previously issued and does not qualify for federal registration, the issuer most likely will be required to register the security by:
A. Coordination
B. Qualification
C. Notice filing
D. Examination
5. All of the following are required when an issuer registers by qualification except:
A. Financial statements of the issuer
B. Regulatory and legal history of the issuer
C. A list of anyone owning more than 1% of the issuer’s securities
D. A sample of the actual security
6. Which of the following securities is not exempt from state registration requirements?
A. Securities issued by companies that only hold foreign investments
B. Securities of an insurance company licensed to operate in the state
C. U.S. government securities
D. Securities issued by an out-of-state municipality
7. All of the following transactions are exempt under Section 402(b) except:
A. Isolated non-issuer transactions
B. Transac