During the Stock Exchange Waiting Period the Potential Issuing Company

question 21

Multiple Choice

During the stock exchange waiting period the potential issuing company can issue a preliminary prospectus which contains:

• A)exactly the same information as the final prospectus except and indication of stock
• Exchange approval.
• B)all the information as the final prospectus including red writing stating it is a red herring.
• C)very limited financial information and red writing stating it is preliminary.
• D)only a description of what the funds are to be used for.
• E)information very similar to the final prospectus without a price nor with stock exchange
• Approval.

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Definitions:

Equity Method

An accounting technique used by firms to assess the profits earned through their investments in other companies by reporting these profits as income.

Consolidating Entries

Journal entries made in the process of combining the financial statements of multiple subsidiaries with those of a parent company.

Original Cost

The acquisition cost of an asset before adjusting for depreciation, amortization, or impairment costs.