A company is planning its IPO. The book-building process closes on Tuesday, the price is set that evening, and final allocations are completed Wednesday morning. The shares are to begin trading on the NYSE. Which of the following must occur before trading can commence?

1. AThe red herring prospectus must be distributed to all potential investors.
2. BThe SEC must declare the registration statement effective after pricing is complete.
3. CThe exchange listing must be officially certified after allocations and before initial trading.✓ Correct answer
4. DThe issuer must submit a post-effective amendment to the registration statement.

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