Series 79 practice questionmediumProspectus Requirements
Which of the following must be included in a preliminary prospectus ('red herring')?
- AFinal offering price
- BList of all selling group members
- CA description of the issuer's business and financial condition✓ Correct answer
- DAudited results for the most recent fiscal quarter only
Explanation
Why C — A description of the issuer's business and financial condition
A preliminary prospectus must disclose the issuer’s business and financial condition. It does not include the final offering price or a complete list of selling group members, and it typically contains more than a single quarter’s audited results. The trap is thinking more limited or more final info is required.
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