The Preliminary Version of a Security Offer That Is Circulated

question 3

Multiple Choice

The preliminary version of a security offer that is circulated to potential buyers before SEC approval (registration) is obtained is called a

• A)final prospectus.
• B)shelf registration statement.
• C)due diligence draft.
• D)waiting period offer.
• E)red herring prospectus.

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Definitions:

Stores

Places where goods are kept for sale or distribution.

Terminals

Points of end or interface in communication systems, transportation, or data processing systems.

Opportunity Cost

The value of the next best alternative forgone as a result of making a decision, a key concept in economics reflecting the potential benefits missed when choosing one option over another.

Roundtrip Ticket

A transportation ticket that allows an individual to travel to a destination and return back to the original departure point.