Asked by Richy Amato on Jun 30, 2024

verifed

Verified

Which of the following is known as a prospectus with a warning written in red print at the top of the page warning investors registration is complete with the SEC but the SEC has not yet approved the registration?

A) Blue law disclosure
B) Red-herring
C) Red-line disclosure
D) Registration redline
E) Black listed

Red-herring

A Red-herring is a distraction or misleading piece of information that diverts attention away from the main issue.

Prospectus

An official document that provides detailed information about an investment, typically issued by companies in the process of going public.

Registration

The act of recording or enrolling details or information officially, often necessary for legal recognition, such as in the case of properties, vehicles, or trademarks.

  • Acknowledge the paramount importance and operation of the registration statement during the securities offering process.
verifed

Verified Answer

CM
Capucine MorelleJul 05, 2024
Final Answer :
B
Explanation :
A red-herring prospectus contains a warning in red at the top indicating that the SEC has not yet approved the registration, serving as a preliminary prospectus to inform potential investors.