Author Question: Countywide Metals is a small company that incorporates in the state in which it is doing business ... (Read 54 times)

ec501234 · **on:** Jun 24, 2018

Countywide Metals is a small company that incorporates in the state in which it is doing business and plans to offer and sell 100,000 worth of stock only to residents of the county in which it is doing business. Discuss the requirements Countywide must meet for registering its securities.

Question 2

The U.S. law that protects against fairly traded imported products is:
A) countervailing duty.
B) antidumping statute.
C) escape clause.
D) import relief.

adf223 · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

The Securities Act of 1933 requires that, before offering or selling securities, the issuer must register the securities with the SEC unless the securities qualify for an exemption. Countywide falls within the intrastate offering exemption. Under SEC Rule 147, an issuer is not required to register securities that are offered and sold only to residents of the state in which the issuer is incorporated and does business. To qualify under Rule 147, 80 percent of Countrywide's revenues and assets must be in-state, and it must also intend to spend 80 percent of the offering's proceeds in-state. Neither Countrywide nor any purchaser can sell the securities outside the state for nine months after the offering.Countywide may be subject to state laws, or blue sky laws, regulating the sale of securities.

Answer to Question 2

C