When issuing securities,which of the following can occur prior to receiving SEC approval?
I.Oral offer to buy shares
II.Written offer to buy shares
III.Final determination of the offer price
IV.Distribution of a preliminary prospectus

Question

Quizplus · Accepted Answer

Oral offers to buy shares can occur prior to SEC approval, but written offers cannot be made until after approval has been received. Final determination of the offer price cannot occur until after SEC approval as it must be disclosed in the final prospectus. Distribution of a preliminary prospectus can occur prior to SEC approval, but it must include a disclaimer informing potential investors that the securities have not yet been approved by the SEC. Therefore, the only options that can occur prior to receiving SEC approval are oral offers and distribution of a preliminary prospectus.

When Issuing Securities,which of the Following Can Occur Prior to Receiving