A Prospectus Sets Forth

question 47

Multiple Choice

A prospectus sets forth:

• A) the key information contained in the registration statement.
• B) information on stocks approved by the SEC.
• C) information that the SEC has not reviewed.
• D) information as to whether the investment is risk-free.

---

Definitions:

Nominal Rate of Interest

The rate of interest before adjusting for inflation, reflecting the rate at which money grows over time.

Purchasing Power

A measure of the amount of goods or services that one unit of currency can buy.

Inflation Rate

The annual percentage rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Probability Distribution

A statistical method charting all conceivable values and odds for a random variable over an agreed-upon range.