Series 79 practice questionmediumProspectus Requirements
A red herring (preliminary prospectus) typically omits which of the following pieces of information?
- ADescription of the issuer’s business
- BDisclosure of risk factors
- CUnderwriting syndicate members
- DFinal offering price and number of shares to be sold✓ Correct answer
Explanation
Why D — Final offering price and number of shares to be sold
The final price and share count are not included in the red herring; these are determined just before pricing. Misunderstanding what preliminary documents must contain is a common error.
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