SIE practice questionmediumProspectus
According to the Securities Act of 1933, what must be provided to investors purchasing new, non-exempt securities?
- AA prospectus✓ Correct answer
- BA customer account statement
- CA summary of economic indicators
- DA coupon payment schedule
Explanation
Why A — A prospectus
A prospectus is required for non-exempt new issue purchases. Account statements (B) are routine. Economic summaries (C) and coupon schedules (D) are not legally required at purchase.
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