A Registration Statement Is Effective on the 20^th Day After

question 54

Multiple Choice

A registration statement is effective on the 20^th day after filing unless:

• A) the SEC is backlogged with statements.
• B) a tombstone ad is issued indicating its demise.
• C) a letter of comment suggesting changes is issued by the SEC.
• D) a syndicate can be formed sooner.
• E) None of these.

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Definitions:

Open-Market Operations

Activities undertaken by central banks to buy or sell government securities in the open market to influence the money supply and interest rates.

Aggregate Demand

The all-embracing pursuit of goods and services in an economy, calculated at a fixed overall price level and within a chosen time frame.

Business Cycle Trough

The phase in the business cycle where economic activity is at its lowest point, preceding a recovery or expansion period.

Purchasing Power

The financial ability to buy goods and services; it reflects the value of money in terms of the quantity of goods or services that one unit of money can buy.