SIE Exam Question 465: Answer and Explanation

Question: 465

A corporation in your state wants to sell 1,000,000 shares of stock at $5 per share to investors. Which of the following is NOT true under Rule 147?

• A. 80% of proceeds must be used in the state.
• B. 80% of corporate assets must be located in the state.
• C. 80% of the purchasers must be in the state.
• D. 80% of the income must be derived from activity within the state.

Correct Answer: C

Explanation:

C: Under Rule 147, 100% of the purchasers must be in the state. The issuer must meet one of the doing-business standards as listed in the other choices.