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.

---

Definitions:

Human Rights

Human Rights refer to the fundamental rights and freedoms that all individuals are entitled to, regardless of nationality, sex, national or ethnic origin, race, religion, language, or any other status.

Sustainability

The practice of maintaining and improving the quality of human life while living within the carrying capacity of supporting ecosystems.

Developing Countries

Countries characterized by a low standard of living, lack of industrial development, and a low Human Development Index compared to other nations.

Public Relations Campaigns

are strategic communication processes that build mutually beneficial relationships between organizations and their publics.