Question

A registered publicly traded issuer has 10,000,000 shares outstanding. If a wealthy investor buys 6,000,000 shares and intends to exercise control:

Answer 1

Answer:

the investor must file a 13D report with the SEC.

Explanation:

Any investor that holds more than 5% of the outstanding stocks of a publicly traded corporation must file a 13D report. The investor is classified as a beneficial owner by the Securities and Exchange Commission (SEC) since their influence and voting power in the corporation are very large. It must be filed within 10 days of the transaction that resulted in more than 5% in the corporation.