The federal government requires that a corporation selling a new issue of securities must disclose information about the company and its finances in a:

Question

Quizplus · Accepted Answer

A prospectus is a legal document that a corporation must file with the Securities and Exchange Commission (SEC) and provide to potential investors when issuing new securities. It includes detailed information about the company's finances, risks, management, and other relevant information necessary for investors to make an informed decision about whether to invest in the company's securities. Annual and quarterly reports provide regular updates on a company's financial performance but are not required for new security offerings, while accountant's audit reports and stock guides do not meet the disclosure requirements for new issues of securities.

The Federal Government Requires That a Corporation Selling a New