10 days till my test and I am officially panicking! I never felt so nervous with the 2 sections I took.
I am struggling with Business Law because it's so darn tricky!
Can somebody help me decipher this question. It feels like Becker's answer is conflicting with its own textbook but I could be the one who's not understanding the material. Ok, so here we go.
CPA-10396
Link Corp is subject to reporting provisions of the SEC Act of 1934. Which of the following reports must be submitted to the SEC?
Choice A. Report by any party making a tender offer to purchase Link's stock
Choice B. Report of proxy solicitation by Link stockholders.
The answer: is both A & B
My confusion is as follows:
with Choice A – Per Becker's textbook pg R7-48 “A tender offer is an offer to all shareholders to purchase stock for a specific price for a specified period of time. Any party making a tender offer to purchase 5% or MORE of the shares …must file a report with the SEC, issuer, and the Exchange.”
It specifically states 5% or more, not any tender offer. Am I not right?
With Choice B – Since when proxy solicitation report is provided by the shareholders? My understanding is that the Proxy solicitation is sent to the SEC by the entity seeking solicitation. Proxy statements are sent to all shareholders and the SEC (along with the Proxy solicitation).
*sigh* I am trying hard not to panic, but business law is so tricky because of the subtle nuances around the law and how it should be applied. Can somebody be kind enough to shed some light on this question. thanks.
BEC - 86 (8/31/12)
AUD - 97 (11/18/12)
REG - 83 (5/12/13)
FAR - 91 (12/2/13)
Done!!!
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