Series 79 practice questioneasyWilliams Act and Tender Offer Regulation
Under Section 13(d) of the Securities Exchange Act, any person who acquires beneficial ownership of more than what percentage of a class of registered equity securities must file a Schedule 13D?
- A3%
- B15%
- C10%
- D5%✓ Correct answer
Explanation
Why D — 5%
Section 13(d) requires any person or group that acquires beneficial ownership of more than 5% of a class of registered equity securities to file a Schedule 13D with the SEC within 10 business days of crossing the threshold. The filing must disclose the identity of the acquirer, the source of funds, the purpose of the acquisition, and any plans or proposals regarding the issuer. Passive investors may file the shorter Schedule 13G instead.
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