Most public issues must be registered with the SEC, and the company may not sell securities until the SEC has approved its registration statement.

Question

Quizplus · Accepted Answer

This is true. The Securities Act of 1933 requires companies to register securities offerings with the SEC before they are sold to the public. The registration statement must contain detailed information about the company, its management, its financial condition, and the securities being offered. The SEC reviews the registration statement and provides comments or requests for additional information before allowing the offering to proceed.

Most Public Issues Must Be Registered with the SEC, and the Company