Fact Pattern 21-3
Yolanda has filed the registration statement, in connection with a public offering of stock in ABC Corgi, a company dedicated to the production of clothing and toys highlighting the highly prized Welsh Corgi breed of dog. The registration statement is not yet effective. Yolanda would like to move forward with promoting the company as much as possible. She asks for advice regarding activities in which she could legally participate. She is particularly interested in making presentations to large institutional investors.
-Refer to fact pattern 21-3. Which of the following is true regarding Yolanda's situation?

Question

Quizplus · Accepted Answer

During the waiting period, Yolanda may solicit offers to buy securities but may not accept them yet. It is important to note that no sales of securities are allowed during the active period, which begins when the registration statement becomes effective, and the red herring may not be distributed during the waiting period. However, offers to buy may be accepted during the active period.

Fact Pattern 21-3 Yolanda Has Filed the Registration Statement, in Connection with a Connection