Fact Pattern 21-3
Yolanda has filed the registration statement, in connection with a public offering of stock in ABC Corgi, a company dedicated to the production of clothing and toys highlighting the highly prized Welsh Corgi breed of dog. The registration statement is not yet effective. Yolanda would like to move forward with promoting the company as much as possible. She asks for advice regarding activities in which she could legally participate. She is particularly interested in making presentations to large institutional investors.
-Refer to Fact Pattern 21-3.Which of the following is true regarding Yolanda's situation?

Question

Quizplus · Accepted Answer

During the waiting period before the registration statement becomes effective, Yolanda may solicit offers to buy securities as long as she meets certain requirements, such as including a disclaimer that no sales can be made until the registration statement becomes effective. However, Yolanda may not accept any offers to buy until the registration statement is effective. She should also avoid making any statements that could be considered promotional or while using the red herring, which is a preliminary version of the registration statement. Therefore, she can make presentations to large institutional investors as long as she complies with these rules.

Fact Pattern 21-3 Yolanda Has Filed the Registration Statement, in Connection with a Connection