Series 63 practice questionmediumMaterial Information
Under the USA, which of the following would MOST likely be considered material information that must be disclosed in a prospectus?
- APending significant mergers or acquisitions✓ Correct answer
- BThe CEO's favorite charity
- CNames of all mid-level managers
- DCompany cafeteria menu
Explanation
Why A — Pending significant mergers or acquisitions
Major pending mergers or acquisitions are material events under the USA and must be disclosed. The other options are not material to a reasonable investor's decision.
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