According to the Securities Act of 1933, which of the following is considered legal during the prefiling period?
A) Selling a covered security.
B) Negotiations and agreements with underwriters.
C) Offering to sell a covered security.
D) Offering to buy a covered security.
E) Sellers may solicit offers for later acceptance.

Question

Quizplus · Accepted Answer

During the prefiling period, it is legal for the issuer of a security to engage in preliminary negotiations and agreements with underwriters. It is illegal to sell a covered security during this period. Offers to sell and offers to buy securities also are prohibited during this prefiling period.

According to the Securities Act of 1933, Which of the Following