When Going Public, Full Compliance with the Securities Act of 1933

question 42

Multiple Choice

When going public, full compliance with the Securities Act of 1933 involves the filing of a(n) _____ with the SEC.

• A) incorporation agreement
• B) compliance statement
• C) terms of agreement
• D) registration statement When going public, full compliance with the Securities Act of 1933 involves the filing of a registration statement with the SEC.

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Definitions:

Default Risk

The risk that a borrower will not make the contractual interest or principal payments on their debt obligations.

Corporate Bond

A debt security issued by a corporation to raise funding, promising to repay the principal along with interest at specified dates.

TIPS Bond

Treasury Inflation-Protected Securities, a type of U.S. government bond designed to help investors protect against inflation by adjusting the principal value based on changes in the consumer price index.

Coupon Rate

The percentage of a bond's face value that is annually paid as interest by the bond.