When Issuing Securities, Which of the Following Can Occur Prior

question 63

Multiple Choice

When issuing securities, which of the following can occur prior to receiving the approval by the SEC of a registration statement? I. oral offer to buy shares
II) written offer to buy shares
III) final determination of the offer price
IV) distribution of a preliminary prospectus

• A) I only
• B) III only
• C) III and IV only
• D) I and IV only
• E) None of the listed activities can occur until after the SEC approval is received.

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Definitions:

Efficiently Allocate

The process of distributing resources in a manner that maximizes the effectiveness or utility of their use.

Monetary Neutrality

The economic theory that changes in the money supply only affect nominal variables and have no effect on real variables such as output or unemployment in the long run.

Fisher Effect

An economic theory proposing that the real interest rate is independent of monetary measures, specifically that the nominal interest rate adjusts to expected inflation.

Nominal Interest Rate

The rate of interest on a loan or investment without adjusting for inflation.