Which statements are true regarding purchase limitations under Regulation A quizlet?

-A principal in a municipal firm is the supervisor of the school board whose bonds the firm is underwriting

-A principal in a municipal firm is the supervisor of the school board whose bonds the firm is trading

-The Treasurer of the township, whose bonds the firm is offering on a principal basis, is on the Board of Directors of the municipal firm

-The Treasurer of the township, whose bonds the firm is offering on an agency basis, is on the Board of Directors of the municipal firm

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C) According to the Securities Act of 1933, a prospectus is defined as any notice, circular, prospectus, advertisement, letter, or communication (regardless of whether its written or on television or radio) that offers a security for sale. This is a very broad definition, but it includes an exemption if the information only identifies the security, the price, the name of the underwriters, and from whom a prospectus may be obtained. This type of advertisement is referred to as a tombstone.

C) Allow your analysts to continue their normal coverage of the stock, assuming there are effective information barriers between your department and investment banking

The Securities Act of 1933 usually limits advertising, sales literature, or research reports related to an issue in registration. However, if an issuer is a reporting company, certain information, including research reports, may be published even if the broker-dealer is participating in the distribution. For larger companies that are followed by analysts, the information, opinion, or recommendation must be contained in a publication that is distributed with reasonable regularity in the normal course of business by the dealer.
For smaller companies, the regular publication must contain similar information, opinions, and recommendations regarding a substantial number of companies in the registrant's industry or a comprehensive list of securities currently recommended by the dealer. The material may not be given greater prominence than other securities.

C) That is permitted to use a FWP after the filing of a registration statement and the issuer must include a statutory prospectus

A free writing prospectus (FWP) is any communication that does not meet the standards of a statutory prospectus. It may be used as a disclosure document for new issues by seasoned issuers, well-known seasoned issuers, unseasoned issuers, and nonreporting issuers. As such, issuers of securities are classified as eligible issuers and ineligible issuers of free writing prospectuses. A penny stock issuer, a shell company, and a blank check company are ineligible issuers regarding the use of a free writing prospectus. Additionally, companies that have filed for bankruptcy protection within the past three years are ineligible issuers. Since this company is an SEC reporting company, but is not eligible to use Form S-3, it is classified as an unseasoned issuer. An unseasoned issuer is permitted to use a free writing prospectus after the filing of a registration statement, and the issuer is also required to include a statutory prospectus. The issuer is permitted to use a hyperlink to accompany or precede the free writing prospectus.

C) An accredited individual investor who owns and invests $250 million of qualifying securities

Investors must generally pass a three-part test in order to be considered a QIB.
(1) Only certain types of institutions are eligible, including insurance companies, registered investment companies, pension plans, corporations, and registered investment advisers.
(2) The buyer must be purchasing for its own account or the account of other QIBs.
(3) The buyer must own and invest at least $100 million of securities of issuers not affiliated with the buyer.

Certain buyers are subject to special tests as alternatives to the three-part test. For example, a broker-dealer is a QIB if it owns and invests $10 million of securities of issuers not affiliated with the BD, or if it acts as a riskless principal for other QIBs.

Banks and S&Ls, in addition to meeting the $100 million portfolio test, must have a net worth of $25 million.

An investment company can be a QIB by being part of a family that in the aggregate meets the $100 million portfolio test.

Finally, any entity where all of whose owners are QIBs is also a QIB.