While the SEC Review Is in Progress, the Issuer Can

question 94

Multiple Choice

While the SEC review is in progress, the issuer can circulate a preliminary prospectus to determine the interest in issue. The preliminary prospectus must include all of the following EXCEPT.

• A) Statement that the registration is filed but not effective.
• B) Statement that the information is subject to change.
• C) Red-Ink it to distinguish it from final prospectus.
• D) All of these

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Definitions:

Category Size Effect

A phenomenon in cognitive psychology where the size of a conceptual category affects processing speed and accuracy; typically, smaller categories are processed faster.

Prototype

A prototype is an initial or preliminary model of something from which other forms are developed or copied.

Concept

An abstract idea or a general notion that represents a category or class of objects, events, or phenomena.

Typicality Effect

The phenomenon where more prototypical or typical instances of a concept are processed faster than less typical instances.