The first time sale of voting common share to outside investors is made through the use of a __________ registration statement that discloses important facts about the offering to potential investors.
A) factual
B) mandatory
C) theoretical
D) voluntary

Question

Quizplus · Accepted Answer

The correct choice is "mandatory" because when a company decides to go public and sell its voting common shares to outside investors for the first time, it is required by law to file a registration statement with the relevant regulatory body (such as the Securities and Exchange Commission in the United States). This registration statement is mandatory and must disclose important facts about the company and the offering to protect and inform potential investors.

The First Time Sale of Voting Common Share to Outside