Question

Even though a company sets a limit on the number of shares it will sell, before selling any of them, the company must receive authorization to market the shares from the Securities and Exchange Commission (SEC). True False

Answer 1

Answer:

Given statement is TRUE

Explanation:

In general (with some exceptions) securities sold in US must be registered. Securities Act of 1933 requires companies intending to issue shares to file and complete registration.

Answer 2

Answer:

True

Explanation:

Based on the scenario been discussed in the question we can it is True and that the company must receive authorization for them be able to market the shares from Security and Exchange Commission (SEC) securities sold in the United state of America must be registered under security and exchange commission. The security and exchange commission was created under the security act of 1934 and gives regularity authority over security exchanges.