Series 10 Exam Question 31: Answer and Explanation

Question: 31

A corporation in your state wants to sell 1,000,000 shares of stock at $5 per share to investors under Rule 147. Eighty percent of all of the following could be located in the state to meet the following business requirement, EXCEPT:

• A. Corporate assets.
• B. Proceeds to be used in the state.
• C. Income derived from activity within the state.
• D. Purchasers.

Correct Answer: D

Explanation:

Under Rule 147, 100% of the purchasers must be in the state.