Series 79 practice questionmediumFollow-On Offerings
Which of the following is a primary risk for issuers conducting overnight marketed follow-on offerings?
- AExtended SEC review delaying pricing
- BBlue Sky preemption requirements for listed securities
- CIncreased cost due to the need for a full prospectus supplement
- DGreater exposure to market volatility prior to pricing✓ Correct answer
Explanation
Why D — Greater exposure to market volatility prior to pricing
Compressed marketing and pricing leave an overnight offering exposed to rapid market moves before pricing. Blue Sky preemption for listed securities is not the primary execution risk.
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