When a company goes public (wants to sell shares of stock),it must prepare a document that describes the company and lists such things as potential risks,how the raised money will be used,the company's dividend policy,etc. This document is known as
A) a balance sheet.
B) the comment letter.
C) a prospectus.
D) a trust agreement.
E) an exit letter.

Question

Quizplus · Accepted Answer

The document that describes the company and lists potential risks, use of raised money, dividend policy, etc. when a company goes public is known as a prospectus.

When a Company Goes Public (Wants to Sell Shares of Stock),it