It is lawful to state or imply in the prospectus that the commission has the power to disapprove securities for lack of merit.

Question

Quizplus · Accepted Answer

The SEC (Securities and Exchange Commission) does not approve or disapprove securities based on their merit. Its role is to ensure that securities are registered and that investors have access to all material information about securities being offered for public sale.

It Is Lawful to State or Imply in the Prospectus