During the OSC Waiting Period the Potential Issuing Company Can

question 19

Multiple Choice

During the OSC waiting period the potential issuing company can issue a preliminary prospectus which contains:

• A) exactly the same information as the final prospectus except and indication of SEC approval.
• B) exactly the same information as the final prospectus including red writing stating it is a red herring.
• C) very limited financial information and red writing stating it is preliminary.
• D) only a description of what the funds are to be used for.
• E) information very similar to the final prospectus without a price nor with SEC approval.

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Definitions:

Net Income

The net income of a company once all costs and taxes are subtracted from its total revenues.

Solvency Measure

Financial metrics used to assess a company's ability to meet its long-term obligations and its financial stability.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be consumed or converted into cash in the short term.

Long-Term Liabilities

Financial obligations of a company not due for more than one year, including bonds payable, long-term leases, and pension obligations.