Securities Regulation Part 2 The federal securities laws are rooted in the stock market crash of 1929 and represent one of the major reforms offered in the New Deal era. Deviate was a small computer manufacturer that started out as a garage business in its CEO Steven's garage. After a few years, the business was incorporated and saw rapid growth. Steven decided that he needed new capital to expand the business and decided to take Deviate public. Deviate issued 1,000,000 shares of stock. He also took out a loan from Nueva Bank. The stock shares were originally sold to an underwriter, Fields & Marks, an investment bank. Fields & Marks then sold the shares to the public using the brokerage firm, H.M. Cotton. Investors bought the entire offering of 1,000,000 shares. Deviate also issued ten-year coupon bonds with a 5% interest rate. The bonds are backed by the general credit of Deviate. Which of the following is an equity instrument? I. Deviate's issuance of 1,000,000 shares of stock. II. The loan between Nueva Bank and Deviate. III. Deviate's issuance of coupon bonds