Flo-Thru Plumbing Corporation is poised to issue securities that,under the Securities Act of 1933,are "exempt." This means that the securities can be sold

Question

Quizplus · Accepted Answer

Securities that are "exempt" under the Securities Act of 1933 can be sold without being registered. Therefore, option D is the correct choice. Options A and B are incorrect because selling securities on the basis of a material omission or misrepresentation, or on the basis of nonpublic information, would be illegal and violate securities laws. Option C is also incorrect because the ability to sell securities within a six-month period by certain insiders is not necessarily tied to whether the securities are exempt or registered.

Flo-Thru Plumbing Corporation Is Poised to Issue Securities That,under the Securities