Riverwalk Restaurants Corporation is a noninvestment company that wants to is?sue stock of $3 million in a twelve-month period. Riverwalk, with less than $20 mil?lion in annual sales, qualifies as a small business issuer. Before Riverwalk sells the stock, it must provide investors with

Question

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As a small business issuer, Riverwalk is required to provide investors with an offering circular before selling the stock. A notice of the issue is not a sufficient disclosure document, a red herring prospectus is typically used for initial public offerings (IPOs) and contains more detailed information than what is required for a small business issuer, and a tombstone ad is an advertisement for the sale of securities and does not provide sufficient disclosure for potential investors.

Riverwalk Restaurants Corporation Is a Noninvestment Company That Wants to Is?sue