Preliminary Prospectus and Investor Interest
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Questions and Answers

What are the two additional items that the final prospectus contains compared to the preliminary prospectus?

  • SEC disclaimer and underwriting contract
  • Release date and POP (correct)
  • History of the business and material financial information
  • Offering price and selling discounts

    • What must precede or accompany all sales confirmations?

  • The SEC disclaimer
  • The underwriting contract
  • A copy of the final prospectus (correct)
  • The preliminary prospectus

    • What is NOT included in the prospectus?

  • Description of the offering
  • The actual underwriting contract (correct)
  • Material financial information
  • Use of the proceeds

    • What is the purpose of the standard SEC disclaimer?

    <p>To disclaim any responsibility for the accuracy of the information</p> Signup and view all the answers

    When can the offering period begin?

    <p>On the effective date</p> Signup and view all the answers

    How long does it typically take to sell the entire offer?

    <p>Days or even weeks</p> Signup and view all the answers

    What is the primary purpose of the preliminary prospectus in the securities issuance process?

    <p>To gauge investor interest and gather indications of interest</p> Signup and view all the answers

    During what period must the preliminary prospectus be made available to customers?

    <p>During the cooling-off period</p> Signup and view all the answers

    What is an indication of interest from an investor?

    <p>A non-binding declaration of potential interest in purchasing securities</p> Signup and view all the answers

    What is the purpose of due diligence by underwriters and selling group members?

    <p>To determine which customers the issue is suitable for</p> Signup and view all the answers

    Why is no money exchanged during the indication of interest process?

    <p>Because sales are prohibited until after the registration becomes effective</p> Signup and view all the answers

    What is the final price of the securities often referred to as?

    <p>Public offering price (POP)</p> Signup and view all the answers

    How many days is the cooling-off period for an APO of NMS securities?

    <p>0 days</p> Signup and view all the answers

    When does an investor need to access the SEC website to meet delivery requirements?

    <p>Always</p> Signup and view all the answers

    What type of securities are exempt from registration and prospectus requirements?

    <p>Government-issued securities</p> Signup and view all the answers

    What is the time frame for an investor to receive the final prospectus for an IPO of non-NMS securities?

    <p>90 days</p> Signup and view all the answers

    What type of issuers are exempt from registration and prospectus requirements?

    <p>Federal government</p> Signup and view all the answers

    What is required for delivery requirements to be met according to regulatory rules?

    <p>Access to the SEC website</p> Signup and view all the answers

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