SIE practice questionmediumSecurities Act of 1933
An issuer files a registration statement for a new stock offering. Under the Securities Act of 1933, when may sales be made to the public?
- AOnce the SEC approves the issue
- BOnce the preliminary prospectus is filed
- CImmediately after the registration statement is filed
- DAfter the registration statement is effective✓ Correct answer
Explanation
Why D — After the registration statement is effective
Sales can only be made after the registration statement becomes effective. The SEC does not approve or guarantee issues; filing and preliminary prospectuses allow only indications of interest, not sales.
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