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Which of the Following Is False Regarding a Prospectus

Question 97

Multiple Choice

Which of the following is false regarding a prospectus?


A) It must be submitted to the Securities and Exchange Commission.
B) It is used to warn investors, and is not used as a selling tool.
C) It is provided to prospective investors to enable them to evaluate the financial risk of the investment.
D) The prospectus must indicate that the securities have not been approved or disapproved by the Securities and Exchange Commission or any state commission.
E) Certain information must be in all-capital letters, and in boldface type.

Correct Answer:

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