Series 79 practice questionmediumSEC Registration Statements
A company is eligible to file a Form S-3 for a primary offering. Which of the following is an advantage of using Form S-3 over Form S-1?
- AIt allows for a higher offering size than S-1.
- BIncorporation by reference of prior SEC reports✓ Correct answer
- CIt eliminates the requirement for audited financial statements.
- DIt allows the company to avoid SEC review entirely.
Explanation
Why B — Incorporation by reference of prior SEC reports
Form S-3 allows streamlined disclosure via incorporation by reference, reducing preparation time. The trap is believing it changes offering size or eliminates core requirements like audits or review.
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