The purpose of issuing a prospectus during a public stock offering is to ________.
A) validate the corporate bonds issued by them
B) provide information to the underwriters
C) disclose information to the SEC
D) create opportunities for debt financing
E) obtain short-term financing from institutions

Question

Quizplus · Accepted Answer

A)Prospectus is an SEC-required document that discloses required information about the company, its finances, and its plans for using the money it hopes to raise. Its main purpose is disclosing information to the SEC.
B)Prospectus is an SEC-required document that discloses required information about the company, its finances, and its plans for using the money it hopes to raise. Its main purpose is disclosing information to the SEC.
C)Prospectus is an SEC-required document that discloses required information about the company, its finances, and its plans for using the money it hopes to raise. Its main purpose is disclosing information to the SEC.
D)Prospectus is an SEC-required document that discloses required information about the company, its finances, and its plans for using the money it hopes to raise. Its main purpose is disclosing information to the SEC.
E)Prospectus is an SEC-required document that discloses required information about the company, its finances, and its plans for using the money it hopes to raise. Its main purpose is disclosing information to the SEC.

The Purpose of Issuing a Prospectus During a Public Stock