SIE practice questioneasyProspectus Delivery
When must a prospectus be delivered to a customer purchasing new shares in a registered public offering?
- AOnly upon customer request
- BNo later than the confirmation of the sale✓ Correct answer
- CWithin 30 days of purchase
- DAfter the cooling-off period only
Explanation
Why B — No later than the confirmation of the sale
The Securities Act of 1933 requires that a prospectus be delivered no later than the confirmation of sale for new issues. It is not only upon request or within 30 days; 'cooling-off period' applies before effectiveness.
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