Series 79 practice questionmediumSEC Registration Statements
Which of the following is true regarding the SEC comment process after a registration statement is filed?
- AThe SEC provides oral comments only, with no written correspondence.
- BThe issuer must respond within 5 business days to each comment.
- CThe SEC may issue multiple rounds, all resolved before effectiveness✓ Correct answer
- DThe comment period automatically ends after 20 days regardless of response status.
Explanation
Why C — The SEC may issue multiple rounds, all resolved before effectiveness
The SEC may issue multiple rounds of comments, and the issuer must address each one satisfactorily before effectiveness. It's a trap to think the process is automatically time-limited or lacks written documentation.
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