When a firm markets new securities, a preliminary registration statement must be filed with
A) the exchange on which the security will be listed.
B) the Securities and Exchange Commission.
C) the Federal Reserve.
D) all other companies in the same line of business.
E) the Federal Deposit Insurance Corporation.

Question

Quizplus · Accepted Answer

The Securities and Exchange Commission (SEC) is the federal agency responsible for enforcing federal securities laws and regulating the securities industry. When a firm plans to issue new securities, it must file a preliminary registration statement with the SEC to provide potential investors with the necessary information to make informed investment decisions. This process is part of the SEC's mandate to protect investors and maintain fair, orderly, and efficient markets.

When a Firm Markets New Securities, a Preliminary Registration Statement