Series 79 practice questionmediumProspectus Requirements
A preliminary prospectus is delivered to an investor. Which of the following must be clearly indicated on its cover?
- AThe effective date of the registration statement
- BThe final offering price
- CThat the information is subject to completion or amendment✓ Correct answer
- DThe post-effective amendment number
Explanation
Why C — That the information is subject to completion or amendment
A red herring must state that it is subject to completion or amendment. The trap is confusing required legends with information not yet available (like effective date or final price).
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