Series 79 practice questioneasyProspectus Requirements
Which item must be included in a preliminary prospectus (red herring) distributed during the SEC review period?
- AA price range for the securities being offered✓ Correct answer
- BThe final offering price
- CThe exact number of shares allocated to each investor
- DA list of all selling group members
Explanation
Why A — A price range for the securities being offered
A red herring must include a price range, but not the final price or allocations. The trap is assuming all details are set before pricing.
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