QUESTION 11 Trail Bike Corporation offers a new issue of securities for sale. Under the Securities Act of 1933, Trail Bike is required to O a. contribute to the operations of national stock exchanges. O b. engage in market surveillance to deter undesirable practices. O c. make periodic disclosures about the corporate organization and finances. O d. disclose financial and other information about the proposed sale. QUESTION 12 Rob, an accountant for Space Inc., learns of a secret company discovery of a new system of rocket propulsion and buys 1,000 shares of Space stock. When the firm publicly announces the discovery, Rob sells his shares for a profit. Under the Securities Exchange Act of 1934, he is most likely liable for O a. insider trading. O b. none of the choices. O c. selling the securities without registration. O d. scienter. QUESTION 13 If the procedures for incorporation are not followed precisely, others may be able to challenge the existence of the corporation. O True O False QUESTION 14 If a shareholder's derivative suit is successful, any damages recovered normally go into the corporation's treasury. O True O False QUESTION 15 Issuing securities is the only way for a new corporation to raise capital. True O False