Series 79 practice questionmediumUnderwriting Process
What is the comfort letter from the issuer’s independent accountants designed to provide?
- ANegative assurance and comfort on specified financial information in the offering materials✓ Correct answer
- BA guarantee of stock price performance
- CAn SEC exemption from Section 11 liability
- DA legal opinion on enforceability of the notes
Explanation
Why A — Negative assurance and comfort on specified financial information in the offering materials
Negative assurance and comfort on specified financial information in the offering materials Comfort letters support the underwriters’ diligence by covering audited and certain unaudited financial information. They are distinct from legal opinions delivered by counsel.
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