Asked by Kevin Wiley Jr. on May 27, 2024
Verified
Components Assembly Corporation is a public company that is poised to issue securities that do not qualify for an exemption from registration. This means that the company must
A) file a registration statement with the SEC.
B) issue the securities through an online registration site.
C) refrain from issuing the securities to unregistered investors.
D) register the securities with a national securities exchange.
Exemption From Registration
A situation where a party is relieved from the requirement to register information or activities with a governmental or regulatory authority.
Components Assembly Corporation
A business specializing in the process of assembling parts to create finished products, often in the manufacturing sector.
SEC
Stands for the Securities and Exchange Commission, a U.S. government agency responsible for regulating the securities markets and protecting investors.
- Comprehend the obligations for publicly traded companies as stipulated by the Securities Act of 1933 and the Securities Exchange Act of 1934.
- Recognize the specific exclusions and conditions within securities legislation for the issuance of securities.
Verified Answer
NM
Nijae MooreMay 28, 2024
Final Answer :
A
Explanation :
When a public company issues securities that do not qualify for an exemption from registration, it must file a registration statement with the SEC (Securities and Exchange Commission). This process is a requirement under U.S. securities laws to provide potential investors with the necessary information to make informed investment decisions.
Learning Objectives
- Comprehend the obligations for publicly traded companies as stipulated by the Securities Act of 1933 and the Securities Exchange Act of 1934.
- Recognize the specific exclusions and conditions within securities legislation for the issuance of securities.