Assume the SEC approved the registration statement for a new securities issue this morning.Which one of the following statements must be true about this issue?

Question

Quizplus · Accepted Answer

The approval of the registration statement means that the SEC has reviewed the disclosures in the registration statement and found them to be in compliance with the applicable rules and regulations governing the issuance of securities. Therefore, it can be inferred that the issuer is following all the required rules and regulations in regard to this issue. However, the SEC's approval does not mean that the issue will be a profitable investment for all purchases made at the offer price, nor does it imply that the red herrings can now be distributed. The waiting period actually starts before the SEC approves the registration statement and the delivery of final prospectuses is not a prerequisite for SEC approval.

Assume the SEC Approved the Registration Statement for a New