Tork purchased restricted securities that were issued pursuant to Regulation D of the Securities Act of 1933. Which of the following statements is correct regarding Tork's ability to resell the securities?
a.
Tork may resell the securities so long as the sale does involve interstate commerce.
b.
Tork may resell the securities as part of another transaction exempt from registration.
c.
Tork may not resell the securities unless Tork obtains a written SEC exemption.
d.
Tork may not resell the securities if the certificates contain a legend indicating that they are unregistered securities.
Choice "B" is correct. Under Regulation D of the Securities Act of 1933, Tork may only resell if the resale transaction continues to fall under the registration exemptions found in Section 3 of the 1933 Act.
Choice "a" is incorrect. Regulation D prohibits immediate reoffering to the public regardless of whether the reoffering is an interstate transaction or not. Choices "d" and "c" are incorrect; there are no such rules.
