Once a registration statement has been filed, a waiting period begins while the Securities and Exchange Commission reviews the statement.

Question

Quizplus · Accepted Answer

This is true. The Securities and Exchange Commission (SEC) has a review process for registration statements that must be completed before the issuer can sell their securities. This waiting period can last anywhere from a few weeks to several months, depending on various factors, such as the complexity of the offering and the responsiveness of the issuer to SEC comments.

Once a Registration Statement Has Been Filed, a Waiting Period