Problem 2: Day 12 of the Clock

Rule 6 of 14 in this unit1.4

1.4 Offerings

SIE outline 1.4

Filed day 1, no acceleration: only the red herring may go out before day 20. NOT a sale yet.

The method for this kind of question

Sort first. Arithmetic second.

Now answer

1 question on this screen, from this outline item's own pool, so some will test a rule you met earlier in the unit. Pick an answer, say how sure you are, then reveal. Being sure and wrong is the most useful thing that can happen here, and the coach treats it that way.

Question 1Exam level

What is a tombstone advertisement, in an offering's own document set?

A. An announcement of the deal; it is not itself an offer to sell B. The final prospectus, carrying the price and shipped with the security C. The preliminary prospectus, used during the cooling-off period D. A registration statement filed directly with the SEC

How sure are you?

Sure Fairly sure Guessing

Correct: A. The tombstone ad only announces the deal; it is not an offer at all.

B. That describes the final prospectus, a separate document that does carry a price.

C. That describes the red herring, used before effectiveness, not the tombstone ad.

D. A registration statement is the issuer's own filing, not an advertisement.

Unit: SIE outline 1.4

Next ruleProblem 6: At or Before Completion

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