lose, did believe that there were no misstatements or omissions U material fo O win, because the value of Yippee's stock was based on false information. win, because executives are strictly liable for any misstatements of fact regarding their corporation's stock. Question 7 Chapter 45-Se 5 pts Arnold is the sole stockholder of a privately-held corporation. Arnold wishes to sell stock in his corporation to a limited number of individuals under an exemption. As a result, Arnold's offering will O not be subject to Rule 144. O not be subject to Rule 10b-5. O be illegal, as exemptions permit sales only to insiders. not require a registration statement. Question 8 Section 10(b) of the Securities Exchange Act and Rule 10b-5 apply to O registering securities. APR 19 CHEN tv 5 pts