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1)Sarbanes-Oxley limits personal loans from a company to its executives to one l

ID: 2495620 • Letter: 1

Question

1)Sarbanes-Oxley limits personal loans from a company to its executives to one loan of no more than $10,000, amortized over five years, at a time. true or false

2)

Under the 1933 Act, proof of intentional violation is usually required to impose:

3)

The damages of a defrauded purchaser of securities:

include speculative damages.

4)

The Securities Enforcement Remedies Act:

5)

The regulation of securities began as a program to:

A. criminal sanctions only. B. criminal or civil sanctions. C. criminal and pragmatic sanctions. D. criminal, civil, and equitable (injunctive) sanctions. E. pragmatic sanctions.

Explanation / Answer

1) False

This act prohibits giving personal loans to directors and executives

2) B

Under 1933 act only civil liability can be claimed, Later on extension of anti-fraud provisons of 1934 were made and could go ahead with criminal charges

3) B

Punitive charges can be claimed, Many class actions suits gets awarded higher compensation

4) A

The SEC after this act in 1990 can stop some incompetent person from becoming director of company

5) C

The regulation of securities started in 1930 during great depression in effort to get america out of recession.