Distinguish between nonissuer exemption, intrastate offering exemption, and private placement exemption
What will be an ideal response?
Nonissuer exemption refers to an exemption from registration which states that securities transactions not made by an issuer, an underwriter, or a dealer do not have to be registered with the SEC. Intrastate offering exemption is an exemption from registration that permits local businesses to raise capital from local investors to be used in the local economy without the need to register with the SEC. Private placement exemption is an exemption from registration that permits issuers to raise capital from an unlimited number of accredited investors and no more than thirty-five nonaccredited investors without having to register the offering with the SEC.
You might also like to view...
When a business requires frequent reporting of the same categories of informa-tion—
a. data remain relatively constant from one reporting period to the next. b. a form report may increase the report writer's efficiency. c. employees are often excused from reporting regularly. d. the data have little value to management.
Which of the following statements is true of false imprisonment?
A) The confinement of a person should be done by moral force alone. B) It involves using a person's name or likeness for commercial gain without the person's permission. C) It involves taking actions that would lead observers to make false assumptions about the person. D) It is the intentional restraint of a person against that person's will and without justification.
There is no legal distinction made between the assets of the business and the personal assets of any
of the owners in the limited partnership. Indicate whether the statement is true or false
Many new business owners prefer a limited liability structure because there are ________
A) fewer corporate formalities B) fewer lawsuits C) typically higher profits than other forms of ownership D) more informal agreements E) limits on the number of members