SIE Exam Question 755: Answer and Explanation

Question: 755

The Trust Indenture Act of 1939 prohibits bond issues over __________ from being offered for sale without a formal agreement signed by both the bond issuer and the bondholder that fully discloses the details of the issue.

• A. $1 million
• B. $5 million
• C. $10 million
• D. $15 million

Correct Answer: B

Explanation:

The Trust Indenture Act of 1939 prohibits bond issues over $5 million from being offered for sale without a formal agreement signed by both the bond issuer and the bondholder that fully discloses the details of the issue.