EBK ADVANCED FINANCIAL ACCOUNTING
12th Edition
ISBN: 9781260165104
Author: Christensen
Publisher: YUZU
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Chapter 14, Problem 14.6.3E
To determine
Introduction: Securities Act of 1933 which is passed in 1933 for security exchange works with the motive to secure the investors so that they can get financial and other important information related to securities issued in public sale and also to have a check on activities like fraud, misrepresentation, etc.Regulation D provides various provisions related to exemptions under securities act of 1933 for issuing corporations. There are rules under this regulation like rule 505, rule 506, rule 506, etc.
To choose: The correct answer.
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what allows companies to issue up to $5mm of securities in any single offering without registration, restrics purchasers only to accredited investors, no disclosure requirment, and no soliciation allowed.
A) rule 501 of regulation D
B) Small business investment incentive act of 1980 section 4(6)
C) SEC rule 144A
D) section 3(a)(11) of SEC act of 1933
E) None of the above
Assume the SEC approved the registration statement for a new securities issue this morning. Which one of the following statements must be true about this issue?
Multiple Choice
The red herrings can finally be distributed as their distribution was awaiting SEC approval.
The waiting period started when the approval was received this morning.
The SEC believes the issue will be a profitable investment for all purchases made at the offer price.
The issuer is following all the required rules and regulations in regard to this issue.
The final prospectuses have all been delivered or the SEC would not have approved the issue.
Q1. Mays bought McCovey Corp. common stock in an offering registered under the Securities Act of 1933. Hart & Co., CPAs, gave an unqualified opinion on McCovey's financial statements that were included in the registration statement filed with the Securities and Exchange Commission. Mays sued Hart under the provisions of the 1933 act that deal with omission of facts required to be in the registration statement. Mays must prove that: (in your response, identify the burdens of proof for the plaintiff under the Securities Act of 1933).
Q2. While conducting an audit, Larson Associates, CPAs, failed to detect material misstatements included in its client's financial statements. Larson's unqualified opinion was included with the financial statements in a registration statement and prospectus for a public offering of securities made by the client. Larson knew that its opinion and the financial statements would be used for this purpose. Which of the following statements is correct with…
Chapter 14 Solutions
EBK ADVANCED FINANCIAL ACCOUNTING
Ch. 14 - Prob. 14.1QCh. 14 - Prob. 14.2QCh. 14 - Prob. 14.3QCh. 14 - Prob. 14.4QCh. 14 - Prob. 14.5QCh. 14 - Prob. 14.6QCh. 14 - Prob. 14.7QCh. 14 - Prob. 14.8QCh. 14 - Prob. 14.9QCh. 14 - Prob. 14.10Q
Ch. 14 - What type of items that specially involve the...Ch. 14 - Prob. 14.12QCh. 14 - Prob. 14.13QCh. 14 - What types of information must be disclosed in the...Ch. 14 - Prob. 14.15QCh. 14 - Prob. 14.1CCh. 14 - Prob. 14.7CCh. 14 - Prob. 14.8CCh. 14 - Prob. 14.1.1ECh. 14 - Prob. 14.1.2ECh. 14 - Organization Structure and Regulatory Authority of...Ch. 14 - Prob. 14.1.4ECh. 14 - Prob. 14.1.5ECh. 14 - Prob. 14.1.6ECh. 14 - Prob. 14.2.1ECh. 14 - Prob. 14.2.2ECh. 14 - Prob. 14.2.3ECh. 14 - Prob. 14.3.1ECh. 14 - Prob. 14.3.2ECh. 14 - Prob. 14.3.3ECh. 14 - Prob. 14.3.4ECh. 14 - Prob. 14.3.5ECh. 14 - Prob. 14.3.6ECh. 14 - Prob. 14.3.7ECh. 14 - Prob. 14.4.1ECh. 14 - Prob. 14.4.2ECh. 14 - Prob. 14.4.3ECh. 14 - Prob. 14.4.4ECh. 14 - Prob. 14.6.1ECh. 14 - Prob. 14.6.2ECh. 14 - Prob. 14.6.3ECh. 14 - Prob. 14.6.4ECh. 14 - Prob. 14.6.5ECh. 14 - Prob. 14.6.6E
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