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:

Nondiscriminating Monopolist

A monopolist who charges the same price to all customers for a good or service, without price differentiation.

Marginal Revenue

The increase in income realized from the sale of one additional product or service unit.

Price Reductions

A strategy where businesses lower the prices of their goods or services to increase demand or sales.

Marginal Cost

The increase in total production cost that arises from producing one additional unit of a product or service.