Hi I need help with the following worksheet . I am having trouble understanding this .

1. Securities generally are defined as any instruments representing corporate ownership (stock) or debts (bonds).

a. Trueb. False

3. The Securities Act of 1933 was designed to:

a. promote the use of proxies by shareholders

.b. oversee and regulate national security contracts.

c. require disclosure of all relevant information concerning the issuance of securities to the public.

d. regulate the operations of national stock exchanges.

5. A typical registration statement filed with the SEC includes: (select all that apply)

a. Any pending lawsuits or special risk factors

b. The management of the corporation, including managerial compensation and benefits

c. How the corporation intends to use the proceeds of the sale

d. The corporation's properties and businesses

e. Any past settlement offers

f. The securities offered for sale

g. The past financial records of the corporation

6. Examples of exempt securities under the Securities Act of 1933 areSelect

bonds issued by the American Red Cross

shares of Apple

bonds issued by Google

investment contracts in condominiums

7. What happens when the internet is used for the delivery of a prospectus?

a. The delivery is voidable

b. There is, in effect, no legal delivery, because the SEC has not yet developed rules to cover this situation

c. The same rules apply that apply to the delivery of a paper prospectus

8. The Rule 504 exemption is used by most small businesses and provides that noninvestment offerings up toSelect

$500,000

$750,000

$2,000,000

$5,000,000

in any twelve-month period are exempt.

Securities that at the time of issue are not of the same class as securities listed on a national securities exchange or quoted in a U.S. automated interdealer quotation system may be resold under Rule 144A.

a. True

b. False

10. When Craig sells securities in his company, he deliberately overstates the value of the company in the prospectus and begins selling the shares one week before the effective date of the registration. What is Craig subject to?

a. Only to civil fines and damages imposed by the state attorney general

b. Only to criminal prosecution by the state attorney general in the state where he committed the crime

c. Only to civil fines and damages imposed by the SEC

d. Prosecution by the Department of Justice and fines and damages if investors are harmed by his acts

.