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A Company Is Planning a Security Offering

Question 72

Multiple Choice

A company is planning a security offering.To drum up public demand,the corporate officers go on a publicity campaign to tout the prospectus of the company and to publicize the securities issue.Additionally,annual reports are sent to all shareholders.Are these actions permitted?


A) Yes; both actions are permissible.
B) The public relations campaign is permissible,but the mailing of annual reports is prohibited.
C) The public relations campaign is illegal,but the mailing of the annual reports is permissible.
D) No; neither action is permissible.

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