A firm can choose to remain private and avoid a lot of regulatory issues if its shares are not sold to the general public and if it has fewer than how many investors?
A)1,000
B)150
C)100
D)500

Question

Quizplus · Accepted Answer

According to the Securities Exchange Act of 1934, a company can avoid certain regulatory requirements if it has fewer than 100 investors and its shares are not publicly traded. According to the Securities Exchange Act of 1934, a firm can avoid having to register with the SEC and disclose financial information if it has fewer than 100 investors and is not publicly traded. Therefore, the best choice is C.

A Firm Can Choose to Remain Private and Avoid a Lot