1. Under Section 3 of the 1933 act, _____.

a. any security offered or sold to a permanent resident of the single state where the issuer of the security resides and does business is exempt under the act

b. if a firm offers securities only to accredited investors for an amount less than $5 million, the issuer is exempt from registration

c. if a firm issues securities to unaccredited investors, it must believe that they have the knowledge to evaluate the risk associated with the security

d. issuers who make private offerings of securities are exempt from the registration process

2. The tipper/tippee theory:

a. holds that any individual who acquires material inside information as a result of an insider's breach of duty has engaged in insider trading.

b. states the rules for limiting shareholders' ability to bring class action suits against nationally traded corporations.

c.states that small investors have a low-risk tolerance and tend not to hold a stock for the long term.

d. holds that if an individual wrongfully acquires and uses inside information for trading for his or her personal gain, he or she is liable for insider trading.