Securities Regulation Outline Fairfax, Spring 2001 Table of Contents Definition of a Security …………………………………………………… Family Resemblance Test ………………………………………… Howie Test ……………………………………………………….. Vertical/Horizontal Commonality ……………………………….. Williamson Test …………………………………………………. Other Definitions ………………………………………………………… Disclosure Requirements ………………………………………………… Bespeaks Caution/Truth on the Market ………………………….. Contingent Factors ………………………………………………. Probability and Magnitude Test …………………………………. Forward Looking Info, Rule 175 …………...……………………. Safe Harbor of 1995 Act …………………………………………. Omissions ………………………………………………………… Statements Flow Chart …………………………………………… Underwriters ……………………………………………………………... Registration Process ………………………………………………………. Integrated Disclosure ……………………………………………… Pre-Filing Period ………………………………………………….. Waiting Period ……………………………………………………. Effective Period …………………………………………………… Violations …………………………………………………………. Transactions Exempt from Registration ………………………………….. Intra-State Offers …………………………………………………. Reg A …………………………………………………………….. Private Placement Offers ………………………………………… Reg D ……………………………………………………………. Broker/Dealers ………………………………………………………….. Know you Security………………………………………………. Suitability ………………………………………………………… Sales on the Secondary Market………………………………………….. Issuances by Underwriters (§4) …………………………………. Sales on behalf of a Non-Control person……………………….. Sales on behalf of Control person of Restricted Stocks ……….. Sales on behalf of Control person of Non-restricted stocks …… Rule 144 ………………………………………………………. Rule 4 ½ ………………………………………………………. Overview of Exemptions ……………………………………… The ’34 Act …………………………………………………………….. Proxies …………………………………………………………. Criminal Liability (excl. 10b5) ………………………………… Control Persons liability ………………………………………. Page Numbers 1 1 2 2 3 3 5 6 6 6 7 7 7 8 9 10 10 12 12 12 12 13 14 16 16 17 18 18 18 19 19 20 21 21 21 22 22 22 23 24 24
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Control Person Overview …………………………………… Aiding and Abetting ………………………………………… Securities Fraud …………………………………………………….. 10b5 Violations …………………………………………….. Misrepresentation ………………………………………….. Materiality …………………………………………………. Scienter, Reliance, Causation, & Damages…………………. Defenses …………………………………………………… .. Offshore Transactions (Reg S) ……………………………………..… Rule 901……………………………………………………….. Rule 903(1) …………………………………………………… Rule 903(2) ……………………………………………………. Rule 903(3) ……………………………………………………. Rule 904(SH) ………………………………………………….. Liability and Subject Matter Jurisdiction ……………………… Conducts Tests…………………………………………………. Effects Test ……………………………………………………. Corporate Takeovers …………………………………………………..
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