Ch 31 Quiz

Websites that raise money for businesses from many small investments is known as:

Crowdfunding

In the 1990s companies started taking the __________ seriously as an important new means of doing business.

Internet

Which of the following provides a moratorium on taxing ISPs on the services they provide to computer users?

Internet Tax Freedom Act

Rightful owners of music typically receive royalties from pirated music.

False

The Federal Trade Commission ensures that prospective investors have access to full and correct information about the company's securities in which they are interested in purchasing.

False

Under the Securities Exchange Act of 1934, the secondary market is defined only as a physical location where one member of the public sells securities to another member of the public

False

Firms that conduct business on the Web are subject to the same legal restrictions as are the traditional brick-and-mortar firms.

True

The Securities Exchange Commission acts to make certain that investors do not violate the Securities Exchange Commission's anti-touting rules.

True

The process for dispute resolution in which a neutral third party meets with the disputants in order to have them come to some form of settlement agreement is:

mediation

Trading the stock of a firm by its own company officials is called __________, but as long as it is reported, it is not illegal.

insider trading

The link or tie that a location must have to a sale in order for the location to collect sales tax is known as a(n):

nexus

The authority of a court to hear a case over an out of state defendant is known as __________ jurisdiction.

personal

An activity in which an investor who owns shares of a company's stock posts notices online - in chat rooms, on web pages, on blogs and elsewhere - that indicate that the value of the stock will increase is known as:

touting

In 1992, the SEC created a computerized system, known as the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system that allows companies to:

upload required information directly into the government's computers.

Which of the following is the federal statute that states that electronic signatures on an electronic contract are just as enforceable as those printed on paper?

Electronic Signatures in Global and National Commerce Act of 2000

Under which of the following pieces of federal legislation are companies must periodically release important business information to the public and to investors.

Securities Exchange Act of 1934

The Securities Act of 1933 covers the sale of securities (stock, bonds, and other forms of investments) in the:

primary market.

The issuing company must provide prospective investors with a:

prospectus

A document that provides relevant and important information about the company, its businesses, and its prospects is known as:

prospectus.

The place where one member of the public sells securities to another member of the public is known as the:

secondary market