SIE practice questioneasySecurities Act of 1933 – Prospectus
A corporation is planning an IPO. Under the Securities Act of 1933, what is the primary document given to potential investors to disclose material information about the offering?
- AAccount Statement
- BAnnual Report
- CProspectus✓ Correct answer
- DForm U-4
Explanation
Why C — Prospectus
A prospectus is the disclosure document required under the Securities Act of 1933 for new securities offerings. Annual reports are financial summaries, not specific to new offerings. Account statements are for customer accounts. Form U-4 registers individuals with FINRA.
Turn it into reps
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