The Securities Act of 1933 allows a emerging growth company (EGC) with less than $1 million in revenues to waive the prospectus requirement.

Question

Quizplus · Accepted Answer

The Securities Act of 1933 does allow for certain exemptions from the prospectus requirement, but having less than $1 million in revenues is not one of them. In fact, companies that qualify as EGCs have certain reduced disclosure requirements, but they are still required to provide a prospectus.

The Securities Act of 1933 Allows a Emerging Growth Company