CPA 2014.0 – REG
Federal Securities Regulation, Question # 1678
Under the Securities Exchange Act of 1934, a corporation with common stock listed on a national stock
exchange:
A. is prohibited from making private placement offerings.
B. is subject to having the registration of its securities suspended or revoked.
C. must submit Form 10-K to the SEC except in those years in which the corporation
has made a public offering.
D. must distribute copies of Form 10-K to its stockholders.
You answered D. The correct answer is B.
The Securities Exchange Commission (SEC) may suspend trading in a stock if they believe it is required to
protect investors and the public interest. Circumstances that could lead to suspension include the following:
A lack of current, accurate, or adequate information about the company (e.g., when a company is not
current in its filings of periodic reports)
Questions about the accuracy of publicly available information, including in company press releases
and reports, about the company’s current operational status, financial condition, or business
transactions
Questions about trading in the stock, including trading by insiders, potential market manipulation, and
the ability to clear and settle transactions in the stock
A corporation with common stock listed on a national stock exchange is not prohibited from making private
placement offerings, must submit Form 10-K to the SEC every year, and does not have to submit copies of
Form 10-K to its stockholders.
Is the answer not D because it does not specify that it is for public issuers?
BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀
*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂
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