Series 63 practice questionmediumMaterial Changes
A company with a registered offering discovers a major accounting error after its registration statement is effective. Under the USA, what is required?
- APrompt amendment of the registration statement to reflect the error✓ Correct answer
- BNo action is required once the registration is effective
- CNotification only to shareholders
- DCorrection in the next annual report
Explanation
Why A — Prompt amendment of the registration statement to reflect the error
Material changes discovered post-registration must be promptly reported by amending the statement (Section 305). Doing nothing (B), selective notification (C), or delayed action (D) do not satisfy the obligation.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Regulation of Securities & Issuers questions
- An agent in State Z is selling securities in a registered offering, but only provides a summary of the prospectus at…
- Which of the following statements about issuer filing requirements under the USA is TRUE?
- An issuer knowingly overstates its annual revenue in its prospectus. Under the USA, which of the following consequences…
- An issuer registers an offering in State Y, but fails to disclose that its major supplier is in bankruptcy. Under the…
- If an issuer fails to comply with ongoing reporting requirements after registration, the Administrator may:
- Which of the following is considered a federal covered security and therefore exempt from state registration?
- Company ABC, whose securities are registered in State Q, learns of a data breach affecting thousands of customers.…
- Which of the following communications would NOT satisfy the USA's disclosure requirements for a securities offering?