Under the 1934 Act,an issuer must register with the SEC if
A)it has not completed a public offering under the 1933 Act.
B)its securities are not going to be traded on a national exchange.
C)it will not be providing investors with a prospectus.
D)it has at least 2,000 shareholders and total assets that exceed $10 million.

Question

Quizplus · Accepted Answer

The 1934 Act requires an issuer to register with the SEC if it has at least 2,000 shareholders and total assets that exceed $10 million. This is known as the "500 shareholder rule" and is intended to provide transparency for investors in companies with a large number of shareholders. The other options given are not correct as completing a public offering, trading on a national exchange, and providing investors with a prospectus do not necessarily trigger registration requirements under the 1934 Act.

Under the 1934 Act,an Issuer Must Register with the SEC