Series 79 practice questioneasyProspectus Requirements
Who typically provides a comfort letter to underwriters during a public offering?
- AThe issuer’s board of directors
- BThe SEC
- CLead bookrunner
- DThe issuer’s independent public accountant✓ Correct answer
Explanation
Why D — The issuer’s independent public accountant
A comfort letter is provided by the independent public accountants to give assurance on financial information. It is not issued by the board, SEC, or underwriter. Confusing the provider can create a false sense of assurance.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 995+ Series 79 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Underwriting & New Financing questions
- Which section of the prospectus typically contains risk factors related to the issuer's business?
- In the context of a securities offering, which of the following most reduces an underwriter’s exposure to Section 11…
- Under Regulation M, what is the primary purpose of stabilization bids in an IPO?
- Which of the following is an accredited investor under Regulation D?
- An IPO syndicate covers its short position by exercising the Green Shoe after shares rise above the offering price.…
- Which of the following accurately describes a 'reverse green shoe' option?
- An underwriter is named as a defendant in a lawsuit under Section 11 of the Securities Act due to a material…
- Which statement best describes 'incorporation by reference' in a registration statement?