A company involved in an initial public offering may sell its shares of stock before the effective date of the offering as long as the investors are accredited.

Name: A company involved in an initial public offering may sell its shares of stock before the effective date of the offering as long as the investors are accredited.
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Question

Quizplus · Accepted Answer

A company cannot sell its shares before the effective date of an IPO, even to accredited investors, as it would violate securities regulations.

A Company Involved in an Initial Public Offering May Sell