Series 79 practice questioneasyIPO Process
In the IPO process, a company's shares cannot be officially listed on the exchange until which action occurs?
- AThe company files a Form 8-K
- BThe SEC issues a comment letter
- CThe registration statement is declared effective by the SEC✓ Correct answer
- DUnderwriters begin the roadshow
Explanation
Why C — The registration statement is declared effective by the SEC
Shares cannot be listed until the SEC declares the registration statement effective, at which point sales and official trading can begin. The trap is confusing exchange listing with earlier procedural steps like filing or roadshow presentation.
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