Read the following scenario and answer the question in 5–10 sentences. Becky purchases one percent of Lakeside Ventures' (LV) preferred shares of stock in a private offering. Outside of the purchase, Becky has no other connection to the company. The terms of the purchase agreement do not state any resale restrictions, and LV is not required to make any periodic filings under the Securities and Exchange Act of 1934. Less than a year later, Becky wants to sell the stock without registration. How would you advise Becky?
Read the following scenario and answer the question in 5–10 sentences. Becky purchases one percent of Lakeside Ventures' (LV) preferred shares of stock in a private offering. Outside of the purchase, Becky has no other connection to the company. The terms of the purchase agreement do not state any resale restrictions, and LV is not required to make any periodic filings under the Securities and Exchange Act of 1934. Less than a year later, Becky wants to sell the stock without registration. How would you advise Becky?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Read the following scenario and answer the question in 5–10 sentences.
Becky purchases one percent of Lakeside Ventures' (LV) preferred shares of stock in a private offering. Outside of the purchase, Becky has no other connection to the company. The terms of the purchase agreement do not state any resale restrictions, and LV is not required to make any periodic filings under the Securities and Exchange Act of 1934. Less than a year later, Becky wants to sell the stock without registration. How would you advise Becky?
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