Exam (elaborations)
BLAW 3310 CH.18 REVIEW questions and answers verified answers||Latest 2024/2025
- Course
- Institution
BLAW 3310 CH.18 REVIEW questions and answers verified answers||Latest 2024/2025
[Show more]
Seller
Follow
Content preview
BLAW 3310 CH.18 REVIEWCorporate finance - ANSthe business function of obtaining funds for a company and managing
them to accomplish the company's objectives
blue sky laws - ANSState laws that regulate the offering and sale of securities for the protection
of the public.
equity financing - ANSRaising funds through the sale of company stock. a purchaser of shares
of stock gains an ownership interest in the corporation.
debt financing - ANSobtained by borrowing money from large lenders, such as banks and
insurance companies
securities - ANSstocks and bonds
Securities and Exchange Commission (SEC) - ANSthe agency charged with enforcing and
administering federal securities laws. An independent agency that has five members appointed
by the president for five-year terms.
Howey test - ANSa test to determine when an investment is a security for the purposes of
federal regulation.
Howey test elements: - ANSAn investment is classified as a security for purpose
of federal regulation if it contains four basic elements:
1. An investment of money
2. In a common enterprise
3. With an expectation of profits
4. Generated by the efforts of persons other than the investors
SEC disclosure requirements - ANSFiling a registration statement with the SEC
registration statement for a new security offering requires: - ANSprospectus and detailed
information required by the SEC.
prospectus - ANS(called Schedule A) condenses the longer registration statement provided to
the SEC and helps investors evaluate a security.
SEC review and approval - ANSThe SEC does not rule on the merit of an offering; that is, it
does not give any opinion about the likelihood of success of a proposed business. Registration
comes into effect 20 days after it is filed.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller QualityPDF. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72841 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now