Corporate Hijacking Quiz

What is the SEC?

According to the podcast, which of the following statements are true about the SEC (there is more than one correct answer)

The SEC sets the price for stocks in the United States and some international exchanges
THE SEC is similar to a referee for the stock and bond market
The SEC is comprised of Senators with legal experience and trading experience
The SEC has the power to investigate violations of the Securities laws.
The SEC has the power to bring civil cases for violations of the Securities laws.
The SEC has the power to imprison people for 3 – 6 months so long there is a reasonable probability that the suspect is in possession of inside information.

According to the podcast, what are activities associated with corporate hijacking? Choose all the right answers, there s more than one.

Identity theft
Using violence to overpower a corporate board
Hijacking a plane
Uses companies that exist on paper but that people are generally ignoring
Filing papers to make it appear that one is an officer of a defunct company
Selling shares of a company that exports goods to countries that are on US sanctions lists
Submitting filings with the SEC to make it appear that a company has great business deals

Which of the following are true about “pump and dump” schemes? Choose all the correct answers, there are more than one.

Pump and dump is a line from a children’s nursery rhyme about magical lawyers.
The scheme involves inflating the price of a stock and then selling the stock for a profit.
It's a scam where criminals cause people to get excited about a stock and then they sell their shares.
It is a scheme where airline companies fuel their planes with illegal jet fuel.

Which of the following is true about this case? Choose all the correct answers, there are more than one.

The case involves federal law because securities are regulated by the federal government.
The case may raise questions under state law because state law governs the formation of business entities.
The case involves federal law because hijacking is a form of terrorism under federal law.
The case may raise questions under state law because only the states may prosecute crimes in the United States.

Which of the following is the best definition of “disgorge”?

Which of the following is true about injunctive relief? Choose all the correct answers, there are more than one.

It's a type of disease.
It's an order from a court to require or to prevent someone from doing something.
It's a order from a court requiring people to come to the aid of people in severe and immediate danger.
It's an alternative to money damages.
It cannot be obtained if a person is seeking money damages.
It's prohibited under New York and New Jersey law.