Series 79 practice questionmediumProspectus Requirements
Under the Securities Act, which of the following must be included in a final prospectus but not necessarily in the preliminary prospectus (red herring) for an IPO?
- AThe final offering price and number of shares offered✓ Correct answer
- BA detailed description of the business
- CRisk factors related to the offering
- DThe names of the company’s executive officers
Explanation
Why A — The final offering price and number of shares offered
The final prospectus must contain the final offering price and number of shares, which are typically left blank in the preliminary prospectus. Other details, like business description and risk factors, are included in both.
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