If there is a significant disparity between the offering price of the shares and the price paid for shares by officers,directors,or founding stockholders,a dilution section is necessary in the prospectus.

Question

Quizplus · Accepted Answer

If there is a significant disparity between the offering price and the price paid by officers, directors or founding stockholders, it may create a perception of dilution among potential investors. To address this, a dilution section should be included in the prospectus to provide clarity and transparency on the issue.

If There Is a Significant Disparity Between the Offering Price