Chapter 3 Practice Questions

1. 1. Which of the following would not be considered a non-exempt issuance of securities?
2. A. A bank offering CDs to its customers
3. B. A bank attempting to raise money for expansion by selling shares of ownership that will trade on the NASDAQ
4. C. A corporation raising money through the sale of bonds in their company
5. D. A small business with less than $10,000,000 in sales that is offering ownership opportunities through radio advertisements on the local news radio station
6. 2. All of the following would be considered a security except:
7. A. Publicly traded stock
8. B. Publicly traded bond
9. C. A variable annuity
10. D. A commodities future
11. 3. Which of the following are found on all registration statements?
12. I. The type of security being issued
13. II. The quantity of the security being issued
14. III. The amount expected to be raised by issuing
15. IV. The contact information of the issuer
16. A. I and II only
17. B. II and III
18. C. I, II, and III
19. D. I, II, III, and IV
20. 4. When a security has not been previously issued and does not qualify for federal registration, the issuer most likely will be required to register the security by:
21. A. Coordination
22. B. Qualification
23. C. Notice filing
24. D. Examination
25. 5. All of the following are required when an issuer registers by qualification except:
26. A. Financial statements of the issuer
27. B. Regulatory and legal history of the issuer
28. C. A list of all officers owning more than 1%
29. D. A sample of the actual security
30. 6. Which of the following securities are exempt from registration?
31. I. Companies that only invest in foreign investments
32. II. Securities of an insurance company licensed to operate in the state
33. III. U.S. government securities
34. IV. Securities issued by a local municipality
35. A. I and II
36. B. I and