Regulation a Issuers Are Allowed to "Test the Waters" Before

question 71

True/False

Regulation A issuers are allowed to "test the waters" before preparing the offering circular (unlike almost all other security offerings).

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Definitions:

Exercise Price

The price at which the holder of an option can purchase (or sell) the underlying security, such as a stock.

Net Profit

The amount of money left over from revenues after all expenses have been deducted, representing the actual profit of a business.

Convertible Bond

A fixed-income debt security that the holder can convert into a specified number of shares of common stock in the issuing company.

Conversion Price

The dollar amount of a bond’s par value that is exchangeable for one share of stock.