Which of the Following Is Correct About the Steps a fiRm

question 60

Multiple Choice

Which of the following is correct about the steps a firm takes in issuing securities to the public?

• A) Unless the number of authorized shares of common stock must be increased, management need not obtain approval from the board of directors.
• B) Management must file a preliminary prospectus with the OSC and to potential investors.
• C) While the OSC studies the proposal the company may begin selling shares.
• D) A red herring contains the final selling price of the securities.
• E) A final prospectus need not be delivered to purchasers if the investor received a red herring.

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Definitions:

Government Spending

Expenditure by the government on goods and services, including public services and infrastructure projects.

Multinational Companies

Corporations that operate and have assets in more than one country, engaging in global business activities.

Intermediate Product

Goods that are used as inputs in the production of other goods and services, not destined for the final consumer.

Gross Private Domestic Investment

The total amount of capital investment in domestic assets by the private sector, including expenditures on physical assets like machinery, buildings, and equipment.