SIE practice questionhardSecurities Act: Prospectus Delivery
An underwriter for a new corporate stock offering must provide a prospectus to investors:
- AOnly after the securities start trading in the secondary market
- BAt or before the time the investor confirms the purchase✓ Correct answer
- COnly if the investor requests one
- DNever—prospectus is not required
Explanation
Why B — At or before the time the investor confirms the purchase
The Securities Act of 1933 requires delivery of a prospectus at or before confirmation of sale. Post-secondary market delivery not required; it’s not optional, and 'never' is incorrect.
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