Which one of the following statements is correct?

Question

Quizplus · Accepted Answer

According to Securities and Exchange Commission (SEC) regulations, a prospectus must be provided to all investors who purchase shares of a new equity offering. It is a legal requirement and is designed to provide investors with information about the company and the securities being offered so they can make informed investment decisions. The other statements are incorrect. Underwriters may play a role in determining the optimal amount of authorized shares, but they do not have the final say. The CEO may have input into the decision to issue new shares, but typically it is the board of directors who has the final authority. The distribution of the prospectus is not the first step in the securities issuance process. Rather, the issuance process begins with filing a registration statement with the SEC, which includes the prospectus. Written offers may not be made during the waiting period, but indications of interest may be collected.

Which One of the Following Statements Is Correct