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Securities and Antitrust Law: Tutoring Solution Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Under Rule 506, how many non-accredited investors can an exempt security be sold to?

Question 2 2. Sampson Industries manufacture a car powered by cooking oil. You only need corn oil to run the car. However, when a customer purchases a car, they are forced to agree to purchase oil from Sampson and no other seller. This an example of a _____.

Question 3 3. Simon was tried and convicted of insider trading. The judge said that Simon would be disgorged of his profits. What does this mean?

Question 4 4.

ABC Company issued securities, which John then purchased in a secondary market.

Which of the following is correct?

Question 5 5. Sam, Mike, and Maurice all own drywall companies. They want to be able to win every bid. They decide that one of them will submit a low bid, while the other two submit higher prices. They take turns doing this, so each of them will get the job at some point in time. What is this called?

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Question 6 6. Highway Motel and Motel Vagabond are the only two hotels on Route 1A. A snow storm is predicted for Saturday night. Knowing that the highway may be impassable, the two innkeepers decide to raise their prices from $39.00 a night to $149.00 a night. Why is this an example of price fixing?

Question 7 7. Freddie just read an article in the financial section of a local paper that stated XYZ Company is in big trouble for faking lab results for a new medication. He decides to call his broker to request that his stock be sold immediately. Freddie is:

Question 8 8. A horizontal agreement is between:

Question 9 9. How do companies attract investors?

Question 10 10. A former employee sued his company for patent infringement. He claimed that they were trying to establish a monopoly and that they cost him his life's savings. The jury ruled in his favor and decided the company needed to pay him $20 million. The court chose to use a provision of the Clayton Act called treble damages, meaning that the company had to pay _____.

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Question 11 11. Who are accredited investors?

Question 12 12. What is the most severe criminal penalty for insider trading?

Question 13 13. Kenneth was walking past a closed office door when he heard a top company executive yell, 'Sell my stock before the whole company goes under.' Kenneth became worried enough that he advised other employees to immediately join him in selling their shares. Did he do anything wrong?

Question 14 14. Which rule applies to interstate sales of securities?

Question 15 15. Which section of the Securities Act of 1933 covers the sale of non-exempt securities?

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Question 16 16. The act that regulates fair competition by enlisting the help of the Federal Trade Commission is the:

Question 17 17. One of the most important purposes of the Sherman Antitrust Act is to:

Question 18 18. Rita is Mr. Lockhart's secretary. He dictated a letter to her about the financial status of the company and it did not look good. She typed the letter, but when she emailed it back for approval, she made a mistake and added every employee of the company to the email. People began selling their company stock and quitting their jobs. Can Rita go to jail for this?

Question 19 19. It has been determined that Zac & Co., Inc disclosed material information in a prospectus that was incorrect. Zac & Co., Inc could be sued to court by using section _____ of the Securities Act of 1933.

Question 20 20. The Securities Act of 1933 ensures that:

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Question 21 21. A vertical agreement is between:

Question 22 22. Technoprinters developed a new printer that everyone wants. The printer can only use the ink cartridges that they manufacture. As a result, people must buy complementary products from them. Why is this illegal?

Question 23 23. Flip's Burgers only sells Yum-A-Roo brand sodas. This is considered:

Question 24 24. All of the following are examples of exempt securities except _____.

Question 25 25. How does the Antifraud Rule affect financial information relating to exempt securities?

Securities and Antitrust Law: Tutoring Solution Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next question. You can skip questions if you would like and come back to them later with the "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. You will lose your work if you close or refresh this page. Good luck!

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