Which one of the following statements is correct?

Question

Quizplus · Accepted Answer

A prospectus must be provided to all investors who purchase shares of a new equity offering. This is a regulatory requirement under securities laws to ensure that investors have access to important information about the company and the offering before making an investment decision. The other statements are not entirely correct. The underwriters play a role in the issuance process but do not necessarily have to approve an increase in authorized shares, the corporate CEO does not have unilateral authority to authorize additional shares, the distribution of the prospectus may not be the first step in the issuance process, and written offers can generally only be made after the waiting period has ended.

Which One of the Following Statements Is Correct