Solved

[Cosmetic Securities] Alessia, the President of Quik Cosmetics, Wanted to Take

Question 73

Multiple Choice

[Cosmetic Securities] Alessia, the President of Quik Cosmetics, wanted to take her company public. She begins meeting with underwriters and sends out a press release mentioning the potential issuance of securities. She then files a registration document and prospectus. In her registration document, she described the securities, how the money from the sale of the securities will be used, described her business and property, and included information about a pending lawsuit in the process of being settled.
-Was Alessia's press release prior to the filing of her registration document and prospectus permissible?


A) No, because it did not go to all prospective shareholders.
B) No, an issuer cannot offer to sell securities during the prefiling period.
C) Yes, an long as it was not an express offer to sell securities.
D) Yes, as long as the information included the names of the underwriters.
E) Yes, as long as the information was truthful.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents