You are interested in buying some newly issued shares of a company.Prior to the sale,the company must provide the SEC with
A)all of its prior years' tax returns.
B)an insurance binder to underwrite the securities.
C)form 1040.
D)a prospectus.

Question

Quizplus · Accepted Answer

The best choice is (D) a prospectus. A prospectus is a legal document that contains detailed information about the company offering the securities, including financial statements, risks associated with the investment, and management information. It is required by the SEC to be filed and approved before a company can offer securities to the public. Options (A) and (C) are not relevant, as tax returns and Form 1040 are not required by the SEC for the sale of securities. Option (B) is also not relevant, as insurance binders are not required for the sale of securities.

You Are Interested in Buying Some Newly Issued Shares of a Company.Prior