Series 63 practice questionmediumMaterial Changes/Disclosure
If there is a material change in the information contained in a registration statement after it has been filed, what action must the issuer take?
- APromptly file an amendment with the Administrator✓ Correct answer
- BWait until the next scheduled filing
- CNotify only those investors who have already purchased shares
- DDo nothing if the change is positive
Explanation
Why A — Promptly file an amendment with the Administrator
Section 305 of the USA requires issuers to promptly file amendments with the Administrator when material changes occur. Waiting (B), selective notification (C), or ignoring (D) all risk violating disclosure obligations.
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