Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blue Company manufactures fiber-optic switches and is located in Cupertino, California, just south of San Francisco. Blue was formed about seven years ago and now

Blue Company manufactures fiber-optic switches and is located in Cupertino, California, just south of San Francisco. Blue was formed about seven years ago and now desperately needs to expand its manufacturing capacity as well as pursue certain new product development possibilities. For this, it needs to raise about $50-$70 million through a public offering of common shares. Blue contemplates that a registration statement covering the offering will be filed May 1st.

For each of the problems that follow, consider whether Section 5 of the Securities Act has been violated. Blue is not a reporting company, has not previously engaged in a public offering of its security, and is an emerging growth company.

1. On February 10th, Karl, Blue's vice president of marketing, places an advertisement to appear in nine upcoming issues of Business Week. The advertisement previously had run for several months in Tech World, a computer trade magazine, and in addition to listing the full range of products manufactured by Blue, it carried a quote from a trade magazine that "Blue is the emerging industry leader in the development and design of fiber-optic switches."

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Law Express Consumer And Commercial Law

Authors: Judith Tillson

6th Edition

1292295775, 978-1292295770

More Books

Students also viewed these Law questions

Question

Go, do not wait until I come

Answered: 1 week ago

Question

Make eye contact when talking and listening

Answered: 1 week ago

Question

Do not go, wait until I come

Answered: 1 week ago