Restricted Securities - Explained

Restricted Securities - Explained

Assessment

Interactive Video

Business, Social Studies

University

Hard

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The video tutorial explains two types of exempt securities: public company exemptions and transactional exemptions. It details holder restrictions on trading, such as limitations on insiders selling shares, and the quantity sale limitation based on weekly trading volume. The tutorial also covers transactional exemptions, which allow certain securities to be issued without SEC registration, and the restrictions on immediate resale, including a 12-month holding period and Rule 144 to prevent straw transactions.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

Describe the purpose of SEC Rule 144 in relation to exempt securities.

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the additional requirements for indicating that securities are exempt once issued?

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