The best answer is C. Show There is no limit on the number of accredited investors that can purchase a private placement under Regulation D. Regarding institutional investors, any investment company, insurance company, bank, or savings and loan is accredited. A non-profit organization, trust, or institutional investor is accredited if it has at least $5,000,000 of assets and was NOT formed with the intent of buying the private placement. The idea here is that people could attempt to get around the 35 non-accredited investor limit by having these non-accredited investors contribute to a trust that would buy the issue. If the trust accumulated $5,000,000 for investment, it would be accredited. But the rule disallows this if the trust is formed for the purpose of buying the private placement! ABC corporation has 18,000,000 shares outstanding. An officer of ABC wishes to sell ABC stock on November 15th under Rule 144. The prior weeks trading volumes are: If the Form 144 is filed on Nov 15th, the maximum sale is: ABC corporation has 18,000,000 shares outstanding. An officer of ABC wishes to sell ABC stock on November 15th under Rule 144. The prior weeks trading volumes are: If the Form 144 had been filed the preceding week, how many shares could have been sold? 185,000 1% of 18,000,000 shares = 180,000 USE THE LARGER NUMBER Under Rule 144, no filing is required if the sale amount every 90 days does not exceed: Trust with assets in excess of $5,000,000 whose purchase is directed by a sophisticated person There is no limit on the number of accredited investors that can purchase a private placement under Regulation D. Regarding institutional investors, any investment company, insurance company, bank, or savings and loan is accredited. A non-profit organization, trust, or institutional investor is accredited if it has at least $5,000,000 of assets and was NOT formed with the intent of buying the private placement. The idea here is that people could attempt to get around the 35 non-accredited investor limit by having these non-accredited investors contribute to a trust that would buy the issue. If the trust accumulated $5,000,000 for investment, it would be accredited. But the rule disallows this if the trust is formed for the purpose of buying the private placement! The best answer is B. Small Business Investment Companies are also exempt from the Act's provisions (though regular Investment Company issues are non-exempt). For commercial paper to be exempt, its maturity must be 270 days or less. Since the maturity in this question is over 270 days, this issue is non-exempt. Variable annuity contracts are also a non-exempt security that must be registered under the 1933 Act, because the customer is basically buying a mutual fund in an insurance company "wrapper." Note, in contrast, that fixed annuities sold by insurance companies are not defined as a security and hence are not subject to registration requirements. C) A fixed life insurance contract. A security is any note, stock, bond, certificate of interest, or participation in any profit sharing arrangement, investment contract, certificate of deposit for a security, interest in oil, gas, or mining rights, or any investment commonly considered a security. (Generally, it is an investment contract wherein the investor is passive and expects a return on the investment through the efforts of others.) The definition of a security does not include direct ownership of real estate, commodities futures contracts (e.g., corn, wheat), collectibles, precious metals, or life insurance or annuity contracts that have fixed payouts. commercial paper Government National Mortgage Association is owned by the U.S. Government. Its issues are exempt from the provisions of the Securities Act of 1933. Small Business Investment Companies operate under Small Business Administration rules and are also exempt from the Act's provisions (though regular Investment Company issues are non-exempt). For commercial paper to be exempt, its maturity must be 270 days or less. Since the maturity in this question is over 270 days, this issue is non-exempt. Variable annuity contracts are also a non-exempt security that must be registered under the 1933 Act, because the customer is basically buying a mutual fund in an insurance company "wrapper." Note, in contrast, that fixed annuities sold by insurance companies are not defined as a security and hence are not subject to registration requirements. Which of the following is a nonGovernment bonds, municipal bonds, and Small Business Investment Company issues are all exempt securities under the 1933 Act. Corporate bonds are non-exempt securities that must be registered with the SEC under the Securities Act of 1933.
Which of the following securities is not exempt from the Securities Act of 1933 quizlet?Which of the following securities is NOT exempt from the Securities Act of 1933? Industrial companies are not exempt - their securities must be registered and sold with a prospectus.
Which of the following is a security according to the Securities Act of 1933?—When used in this title, unless the context otherwise requires— (1) The term ''security'' means any note, stock, treasury stock, security future, security-based swap, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, ...
What is the Securities Act of 1933 quizlet?The Securities Act of 1933 regulates new issues of corporate securities sold to the public. The act is also referred to as the Full Disclosure Act, the Paper Act, the Truth in Securities Act, and the Prospectus Act. The purpose of the act is to require full, written disclosure about a new issue.
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Under the Securities Act of 1933 which of the following is a non-exempt security quizlet
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