Companies Issuing Stock to the Public Have to Be Aware

Question

Examlex · Accepted Answer

The Answer is a)A comment letter is issued by the SEC to specify deficiencies that must be corrected prior to the security being offered for sale.
b)A preliminary prospectus,also referred to as a red herring,provides tentative information to investors about an upcoming issue.
c)The shelf registration allows a company with stock actively traded to establish a registration statement which can be updated in a short period of time,2 or 3 days,and then issue more stock.The shelf registration is limited to 10 percent of the company's currently outstanding stock.A company may in this manner choose an optimal period in which to sell more stock.

Companies Issuing Stock to the Public Have to Be Aware

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