Practice Quiz

FINRA Series 7

Category - Series 7

Start a Study Session Sign up for Question of the Day
The Bubba Corporation is offering stock to the public for the first time. The registration statement lists 150,000 shares for sale at $400 per share. The company conducts business in a 100-mile radius that includes towns in two neighboring states. Which of the following information is not required in the preliminary prospectus for this offering?
  1. a notice in red ink to the effect that the prospectus has not been approved by the SEC
  2. a section describing how the funds from the sale will be used
  3. a statement of the company’s assets and liabilities
  4. the price at which the issue is offered
Explanation
Answer: D - the price at which the issue is offered. The offering price is usually determined on the offering date and does not normally appear in the preliminary prospectus.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz