The federal government requires that a corporation selling a new issue of securities must disclose information about the company and its finances in a(n):
A)annual report.
B)quarterly report.
C)accountant's audit report.
D)prospectus.
E)stock guide.

Question

Quizplus · Accepted Answer

A prospectus is a document that companies must provide to investors before selling a new issue of securities, detailing important information about the company and its finances, as required by federal regulations.

The Federal Government Requires That a Corporation Selling a New