A Prospectus

question 46

Multiple Choice

A prospectus:

• A)makes forecasts of the annual return on a company's common stocks.
• B)is the basic selling document of the 1933 Act registered offering.
• C)includes statements that tout the securities.
• D)is a public offer by a bidder to purchase a target company's equity securities.

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Definitions:

Cash Flows

The entirety of monetary transactions coming into and going out of a corporation, crucially affecting its immediate financial resources.

Indirect Method

An approach to preparing the cash flow statement where the net income is adjusted for non-cash transactions and changes in working capital to estimate cash flows from operating activities.

Cash Dividends

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

Long-Term Investments

Assets that a company intends to hold for more than one year, including stocks, bonds, and real estate.