Asked by Michael Hernandez on May 19, 2024
Verified
Which of the following would NOT be exempt from registration under the 1933 Securities Act?
A) An offering restricted to the residents of the state in which the issuing company is a resident and doing business.
B) An offering by a noninvestment company issuer for $4 million in securities over 12 months without general advertising or general solicitation.
C) An offering of limited partnership tax shelters.
D) A private offering to sophisticated investors who will not redistribute them.
1933 Securities Act
A federal statute that requires securities sold in the U.S. to be registered and to disclose relevant financial information, aiming to protect investors from fraud.
General Solicitation
The act of publicly advertising or promoting an investment opportunity, often regulated by securities law to protect investors.
Noninvestment Company
An entity primarily engaged in operations other than investing, reinvesting, or trading in securities and does not qualify as an investment company under relevant regulations.
- Gain insight into the exceptions related to securities registration and their respective stipulations.
Verified Answer
Learning Objectives
- Gain insight into the exceptions related to securities registration and their respective stipulations.
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