Guitar Factory Corporation Files a Registration Statement and Delivers a Prospectus

Guitar Factory Corporation files a registration statement and delivers a prospectus to the appropriate parties. These items are intended to enable the evaluation of certain financial risks by​

A) market professionals to explain to all investors.
B) government regulators to disclose to the general public.
C) sophisticated investors only.
D) unsophisticated investors.Fact Pattern 21-2 Eddie, an accountant for Fresh Dairy, Inc., learns of undisclosed company plans to market a new smooth-tasting, fat-free butter.Eddie buys 10,000 shares of Fresh Dairy stock.He reveals the company plans to Giselle, who buys 5,000 shares.Giselle tells Hong, who tells Irwin, each of whom buy 1,000 shares.They know that Giselle got her information from Eddie.When Fresh Dairy publicly announces its new product, Eddie, Giselle, Hong, and Irwin sell their stock for a profit.