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 fact that the SEC approved the registration statement indicates that the issuer has followed all required rules and regulations. However, it does not necessarily indicate anything about the distribution of red herrings, the start of the waiting period, the SEC's belief in the profitability of the investment, or the delivery of final prospectuses.

Assume the SEC Approved the Registration Statement for a New