Which of the following statements about the preliminary prospectus is (are)true?
A)It indicates the maximum price at which the shares will be sold in the IPO.
B)It typically provides a price range within which the shares are expected to be offered for sale.
C)It provides prospective buyers with the specific assumptions used to set the price at which the shares will be offered.
D)All of the above are true statements.

Question

Quizplus · Accepted Answer

The preliminary prospectus typically provides a price range within which the shares are expected to be offered for sale. It does not indicate the maximum price at which the shares will be sold or provide specific assumptions used to set the price. A preliminary prospectus typically provides a price range within which the shares are expected to be offered for sale, but it does not indicate the maximum price or provide specific assumptions used to set the price.

Which of the Following Statements About the Preliminary Prospectus Is