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SIE: Capital Markets & Offerings
SIE practice questioneasySecurities Act of 1933 - Prospectus

A company is issuing new shares to the public for the first time. According to the Securities Act of 1933, what must the company provide to investors?

  1. AA prospectus disclosing financial and business information✓ Correct answer
  2. BA quarterly earnings report
  3. CA broker-dealer license
  4. DA market makers’ list
Explanation

Why AA prospectus disclosing financial and business information

A prospectus is required for new securities offerings so investors can make informed decisions. Quarterly reports, broker licenses, or market makers' lists are not substitutes for the prospectus requirement.

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