Amy's corporation will have a broad distribution base.She is currently working on a statement pertaining to matters that are likely to affect the value of securities.Which of the following matters must be disclosed,in accordance with securities legislation,in the document Amy is preparing?

Question

Quizplus · Accepted Answer

According to securities legislation, a prospectus must contain complete, accurate, and undisguised disclosure of material facts that are likely to affect the value of securities. Therefore, option C is incorrect because "equity option memorandum" is not a term commonly used in securities regulations, and option B is incorrect because offering memorandums are not subject to as strict disclosure requirements as prospectuses. Option A is also incorrect because it only refers to specific restrictions, rather than a general disclosure requirement.

Amy's Corporation Will Have a Broad Distribution Base