Before a corporation sells securities, that corporation is required by law to offer future investors the opportunity to read through a document which contains complete information on both the new issue and the corporation. What is that document called?

Question

Quizplus · Accepted Answer

The document that a corporation is required to offer future investors before selling securities is called a prospectus. It contains complete information about the new issue and the corporation, including financial statements, management bios, risk factors, and more.

Before a Corporation Sells Securities, That Corporation Is Required by Law