Asked by Brandt Cortina on May 02, 2024
Verified
The Securities and Exchange Commission requires virtually all new public issues of corporate securities to be registered.As part of the registration process for a new security issue,the issuer must prepare a(n)
A) essay
B) prospectus
C) application
D) financial report
Prospectus
A formal document that companies use to describe the securities they are offering for participants and investors.
Registration Process
The sequence of actions taken to officially sign up or enroll in a service, event, or system.
- Comprehend the role and prerequisites of securities, encompassing the process of registration and the preparation of a prospectus.
Verified Answer
ZK
Zybrea KnightMay 06, 2024
Final Answer :
B
Explanation :
The issuer must prepare a prospectus as part of the registration process for a new security issue. A prospectus is a formal legal document that provides details about the investment offering for sale to the public.
Learning Objectives
- Comprehend the role and prerequisites of securities, encompassing the process of registration and the preparation of a prospectus.
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