Scope of the Investigation and the Feasibility Question

What this video covers

• The four factors that determine how deep a reasonable investigation must go: the nature of the recommendation, the firm's role, its relationship to the issuer, and the issuer's size and stability
• Why "no fixed checklist" cuts one way, not two, and why mechanically completing a generic checklist does not prove adequate investigation
• The five mandatory minimum items every reasonable investigation must address: issuer and management, business prospects, assets, claims, and use of proceeds
• Why a prior investigation for the same issuer does not carry over to a new offering, and how the exam baits you with "already investigated" language
• What a feasibility study actually is: the issuer's internal analysis of whether its business plan, forecasts, and assumptions hold up under scrutiny
• The critical distinction between the issuer creating the feasibility study and the representative's independent due diligence in stress-testing those assumptions
• Why feasibility study is an industry term with no defined regulatory checklist in private placement rules, and how the exam traps you on that framing