18 Questions
What are the two additional items that the final prospectus contains compared to the preliminary prospectus?
Release date and POP
What must precede or accompany all sales confirmations?
A copy of the final prospectus
What is NOT included in the prospectus?
The actual underwriting contract
What is the purpose of the standard SEC disclaimer?
To disclaim any responsibility for the accuracy of the information
When can the offering period begin?
On the effective date
How long does it typically take to sell the entire offer?
Days or even weeks
What is the primary purpose of the preliminary prospectus in the securities issuance process?
To gauge investor interest and gather indications of interest
During what period must the preliminary prospectus be made available to customers?
During the cooling-off period
What is an indication of interest from an investor?
A non-binding declaration of potential interest in purchasing securities
What is the purpose of due diligence by underwriters and selling group members?
To determine which customers the issue is suitable for
Why is no money exchanged during the indication of interest process?
Because sales are prohibited until after the registration becomes effective
What is the final price of the securities often referred to as?
Public offering price (POP)
How many days is the cooling-off period for an APO of NMS securities?
0 days
When does an investor need to access the SEC website to meet delivery requirements?
Always
What type of securities are exempt from registration and prospectus requirements?
Government-issued securities
What is the time frame for an investor to receive the final prospectus for an IPO of non-NMS securities?
90 days
What type of issuers are exempt from registration and prospectus requirements?
Federal government
What is required for delivery requirements to be met according to regulatory rules?
Access to the SEC website
Learn about the preliminary prospectus, also known as the 'red herring', its purpose, and how it helps issuers gauge investor interest and gather indications of interest. Understand how it differs from the final prospectus and when it's made available to customers.
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