ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 14, Problem 14.2.2E
To determine
Introduction: Security Act of 1933was created into law to protect interest of investors. The legislation has to main goals. To ensure more transparency to help investor make informed decisions and to establish law against fraudulent activities in the securities market. It is first major legislation regarding the sale of securities. The legislation addressed the need for better disclosure by requiring companies to register with the SEC.
To choose:The correct answer to determine during the review period registrant is prohibited from which of the following option.
Expert Solution & Answer
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Students have asked these similar questions
Section 11(b) of the Securities Act of 1933 provides that individuals can be sued and maybe liable for investors’ losses in connection with a public securities offering under which ofthese circumstances?a. The chairman of the board of directors performed a reasonable investigation of facts inconnection with preparing the section in the registration statement concerning the specification of the use of the proceeds of the offering.b. A consulting engineer performed a reasonable investigation and reported in the registration statement on the feasibility of construction of a roadway to be financed with theoffering proceeds.c. The president of the issuing entity had no reason to doubt the report of the consultingengineer, although the president did not perform a separate reasonable investigation ofher own.d. The officers of the issuing entity were relieved that the independent auditors did notmake an issue about the excessive valuation of inventory held to support construction inprogress
MC Qu. 41-05 Which of the following describes...
Which of the following describes a prospectus?
Multiple Choice
A prospectus is an oral promise that assures the buyer of the veracity of the information in the registration
statement.
A prospectus an advertising tool that issuers distribute to potential investors.
A prospectus is a document that describes the securities offered for sale and the SEC's approval of those securities.
A prospectus is a collection of all of the company's financial documents.
APR
27
A
AW
rave
X
The issue of security througha number of processes .once the SEC has commented to interest on the registration statement and a preliminary prospectus has been distributed to interest invetors,the investment bankers organizeroad shows and undertake book building in the process. Required: Explain the meaning and two [2]purposes of road showa as used in the preamble above.
Chapter 14 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
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
Knowledge Booster
Similar questions
- 1.In accordance with CFA standard V(B), in preparing a research report involving securities, the members and candidates must:A.present the basis characteristics(general principles of the investment of the investment process used-such as risk and return related issues) B.Include all factors that are relevant including any significant limitations and risks associated with the investment and/or decision-making process. C.All the options listed. D.Provide regular updates to any important changes to the securities(prices, risks.etc) 2. In accordance with CFA standard VI(A), a member must: A.Disclose all actual and perceived conflicts of interest when it is convenient to ensure no loss of income. B.Use their professional judgement and disclose conflicts of interest if the monetary value exceeds 300. C.Disclose all actual and perceived conflicts of interest before assisting the client or employer. D.Use their professional judgement and only disclose actual conflicts of interest.arrow_forwardThe issuing of security goes through a number of processes. Once the SEC has commented on the registration statement and a preliminary prospectus has been distributed to interested investors, the investment bankers organize road shows and undertake book building in the process.Required: Explain the meaning and two (2) purposes of road shows as used in the preamble above.arrow_forwardFollowing are typical questions that might appear on an internal control questionnaire for investments in marketable securities. Is custody of investment securities maintained by an employee who does not maintain the detailed records of the securities? Are securities registered in the company name? Are investment activities reviewed by an investment committee of the board of directors? Describe the manner in which each of the above procedures might be tested.arrow_forward
- (Students should visit the SEC website, www.sec.gov, for supplemental resources.) What is a private placement of securities?arrow_forwardThe Securities Act of 1933 and Securities Exchange Act of 1934 containa. Civil liability provisions applicable to auditors. b. Criminal liability provisions applicable to auditors. c. Neither a nor b. d. Both a and b.arrow_forwardUnder what circumstances may securities owned by the client not be on hand at the end of the reporting period?arrow_forward
- Select the necessary words from the list of possibilities to complete the following statements. Statements Answer The 1. auditors' review for subsequent events. case, a landmark case of liability under the Securities Act of 1933, involved criticism of the A document including audited financial statements that must be filed with the SEC by any company intending to 2. sell its securities to the public through the mails or interstate commerce is called a 3. An is the written contract summarizing the relationship between the auditors and the client. The 4. case was a landmark case regarding the accountant's liability for unaudited financial statements. 5. Gross negligence is also referred to asarrow_forwardWhich of the following is usually not filed with the SEC on a regular periodic basis? Choose the correct. a. A Form 10–Qb. A prospectusc. A proxy statementd. A Form 10–Karrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage LearningAuditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College Pub
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337619455/9781337619455_smallCoverImage.gif)
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781305080577/9781305080577_smallCoverImage.gif)
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub