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NEW QUESTION: 1
Dr. Floss has just earned his dental degree and wants to establish a private dental practice. He has had a
bit of sticker shock at the price of all the equipment this will require him to purchase. Because he still has
a large student loan to repay, he has been unable to borrow any money from his financial institution. To
raise capital, he decides to sell fifty ownership interests of $1,000 each to interested investors and takes
out a full page ad in a local newspaper to advertise this investment. In this scenario:
A. Dr. Floss has violated the provisions of the Securities Act of 1933 and may face civil penalties.
B. Dr. Floss can be charged with criminal fraud under the provisions of the Securities Exchange Act of
1 934.
C. Dr. Floss has not violated any laws since the notes have a face value of only $1,000 and he is selling
them to a maximum of 50 different investors.
D. Dr. Floss has not violated any laws since these ownership interests do not fall under the definition of a
security.
Answer: A
Explanation:
If Dr. Floss offers fifty ownership interests of $1,000 each for sale to interested investors, he
has violated the provisions of the Securities Act of 1933, which requires that new securities be registered
unless they are exempt from registration, and may face civil penalties. There is no evidence that he has
made any misrepresentations or otherwise attempted to defraud investors, so he is not subject to criminal
fraud charges. The ownership interests do fall under the definition of a security.

NEW QUESTION: 2
Drag and Drop Question
Drag and drop the routing characteristics on the left to correct routing category on the right. Not all options on the left are used.

Answer:
Explanation:

NEW QUESTION: 3

A. Option B
B. Option C
C. Option A
D. Option D
Answer: D
Explanation:

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