When a Company Decides to Go Public, It Must File

question 51

Multiple Choice

When a company decides to go public, it must file a registration statement with the SEC. Which of the following statements is true regarding this registration process?

• A) A registration becomes effective 10 days after the final change has been submitted to the SEC.
• B) Tombstone ads can be published before the registration becomes effective.
• C) Securities can be sold before the registration becomes effective.
• D) The financial statements submitted for the registration process must be certified for the past six years. A registration becomes effective 20 days after the final change has been submitted to the SEC. No securities can be sold before the registration becomes effective however the tombstone ads can be published. However, tombstone ads may be published to announce the anticipated offering.

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Definitions:

Developing Paragraphs

Developing paragraphs involves expanding ideas through supporting details, examples, and explanations to enhance clarity and engagement in writing.

Support Sentences

Sentences that provide information, examples, or details to explain or strengthen a main idea or topic in a paragraph.

Topic Sentences

Sentences that express the main idea of a paragraph, serving to organize and give focus to the writing.

Linear Organization

A method of structuring information or arguments in a sequential, step-by-step manner.