Which of the following is true of registration of securities under the Securities Act of 1933?
A) The act authorizes the Securities and Exchange Commission to decide whether or not a public offering of stock is meritorious and should be sold to the public.
B) The prospectus of a registration statement does not include pending lawsuits.
C) The registration statement provides the use to be made of the funds garnered by a public offering of stock and the risks involved for investors.
D) Part II of a registration statement is given to prospective buyers, but it is not open for public inspection at the Securities and Exchange Commission.

Question

Quizplus · Accepted Answer

The registration statement filed with the Securities and Exchange Commission provides information about the securities being offered, including the use of funds and risks involved, and must be made public for potential investors to review. The Commission does not decide on the merit of an offering, but rather evaluates whether required disclosures have been made. Pending lawsuits must be disclosed in the prospectus. Part II of the registration statement is available for public inspection at the SEC.

Which of the Following Is True of Registration of Securities