Although issuers of securities are required to file a registration statement with the Securities and Exchange Commission,they are not required to file a prospectus because the prospectus is merely an advertising tool that issuers distribute to potential investors.

Question

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Along with filing a registration statement,issuers of securities must also file a prospectus with the Securities and Exchange Commission (SEC).A prospectus is a written document that contains most of the information that appears in the registration statement.The prospectus is different from the registration statement,however,because it is an advertising tool that issuers distribute to potential investors,who rely on the prospectus to help decide whether they should buy securities.

Although Issuers of Securities Are Required to File a Registration