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The Term "Red Herring" That Is Used for a Prospectus

Question 227

Multiple Choice

The term "red herring" that is used for a prospectus before it is approved by the SEC comes from:


A) the traditional red ink and reddish paper used in writing a prospectus
B) ancient Roman law traditions
C) a reference to being "in the red"
D) no one knows
E) the red paper used when the Securities Act of 1933 was enacted

Correct Answer:

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