Dynamo Motors has begun to sell corporate securities.Dynamo is required by law to offer future investors the opportunity to read a document that contains complete information on both the new issue and the corporation itself.What is that required document called?

Question

Quizplus · Accepted Answer

C)A prospectus is a document containing pertinent information about the offered security and issuing company. The purpose of requiring a prospectus is to protect investors from fraudulent issues, so false statements in a prospectus are subject to criminal penalties.

Dynamo Motors Has Begun to Sell Corporate Securities