Assume the SEC approved the registration statement for a new securities issue this morning.Which one of the following statements must be true about this issue?

Question

Quizplus · Accepted Answer

The approval of the registration statement by the SEC indicates that the issuer has followed all required rules and regulations in regard to the new securities issue. However, the approval does not necessarily indicate that the SEC believes the issue will be profitable or that the final prospectuses have been delivered. The distribution of red herrings is also not dependent on SEC approval, so choice A is incorrect. The waiting period starts when the registration statement is filed, not when it is approved, so choice B is also incorrect.

Assume the SEC Approved the Registration Statement for a New