Series 79 practice questioneasyProspectus Requirements
Under the Securities Act of 1933, when must a final prospectus be delivered to investors?
- ANo later than with the confirmation of sale or delivery of the security✓ Correct answer
- BAt least 30 days before the purchase
- COnly if the investor specifically requests one
- DWithin 90 days after the offering closes
Explanation
Why A — No later than with the confirmation of sale or delivery of the security
Section 5(b)(2) of the Securities Act requires that a final prospectus accompany or precede the delivery of any security sold in a registered offering. In practice, this means the final prospectus must be delivered no later than the confirmation of sale. Under the SEC's 'access equals delivery' rule, for exchange-listed securities, the filing of the final prospectus with the SEC satisfies the delivery requirement because investors can access it electronically on EDGAR.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 477+ Series 79 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Underwriting & New Financing questions
- Which of the following is NOT typically required to be disclosed in a prospectus for an IPO?
- An issuer files a registration statement and receives a deficiency letter from the SEC. What does this mean?
- A company's preliminary prospectus states that it will use 60% of IPO proceeds for acquisitions. After the IPO, the…
- What information must be included in Part I of a Form S-1 registration statement?