Prospective investors are advised of a stock's potential risks by the:

Question

Quizplus · Accepted Answer

The prospectus is a document provided to potential investors that outlines the risks associated with investing in a particular stock. It is required by the Securities and Exchange Commission (SEC) and is intended to provide investors with all the necessary information to make an informed decision before investing. The underwriter is responsible for assisting the company in preparing the prospectus, but the prospectus itself is the primary source of information for investors regarding the risks associated with the investment. Underpricing laws and initial public offerings do not provide information on the risks of a stock.

Prospective Investors Are Advised of a Stock's Potential Risks by The