EBK ADVANCED FINANCIAL ACCOUNTING
12th Edition
ISBN: 9781260165104
Author: Christensen
Publisher: YUZU
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Chapter 14, Problem 14.6.1E
To determine
Introduction: Securities Act of 1993 which is passed in 1993 for security exchange works with the motive to secure the investors so that they can get financial and other important information related to securities issued in public sale and also to have a check on activities like fraud, misrepresentation, etc.
To choose: The correct answer.
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MC Qu. 41-05 Which of the following describes...
Which of the following describes a prospectus?
Multiple Choice
A prospectus is an oral promise that assures the buyer of the veracity of the information in the registration
statement.
A prospectus an advertising tool that issuers distribute to potential investors.
A prospectus is a document that describes the securities offered for sale and the SEC's approval of those securities.
A prospectus is a collection of all of the company's financial documents.
APR
27
A
AW
rave
X
1.In accordance with CFA standard V(B), in preparing a research report involving securities, the members and candidates must:A.present the basis characteristics(general principles of the investment of the investment process used-such as risk and return related issues)
B.Include all factors that are relevant including any significant limitations and risks associated with the investment and/or decision-making process.
C.All the options listed.
D.Provide regular updates to any important changes to the securities(prices, risks.etc)
2. In accordance with CFA standard VI(A), a member must:
A.Disclose all actual and perceived conflicts of interest when it is convenient to ensure no loss of income.
B.Use their professional judgement and disclose conflicts of interest if the monetary value exceeds 300.
C.Disclose all actual and perceived conflicts of interest before assisting the client or employer.
D.Use their professional judgement and only disclose actual conflicts of interest.
. The issuing of security goes through a number of processes. Once the SEC has
commented on the registration statement and a preliminary prospectus has been
distributed to interested investors, the investment bankers organize road shows and
undertake book building in the process.
Required: Explain the meaning and two (2) purposes of road shows as used in the
preamble above.
2921 0 2
Chapter 14 Solutions
EBK ADVANCED FINANCIAL ACCOUNTING
Ch. 14 - Prob. 14.1QCh. 14 - Prob. 14.2QCh. 14 - Prob. 14.3QCh. 14 - Prob. 14.4QCh. 14 - Prob. 14.5QCh. 14 - Prob. 14.6QCh. 14 - Prob. 14.7QCh. 14 - Prob. 14.8QCh. 14 - Prob. 14.9QCh. 14 - Prob. 14.10Q
Ch. 14 - What type of items that specially involve the...Ch. 14 - Prob. 14.12QCh. 14 - Prob. 14.13QCh. 14 - What types of information must be disclosed in the...Ch. 14 - Prob. 14.15QCh. 14 - Prob. 14.1CCh. 14 - Prob. 14.7CCh. 14 - Prob. 14.8CCh. 14 - Prob. 14.1.1ECh. 14 - Prob. 14.1.2ECh. 14 - Organization Structure and Regulatory Authority of...Ch. 14 - Prob. 14.1.4ECh. 14 - Prob. 14.1.5ECh. 14 - Prob. 14.1.6ECh. 14 - Prob. 14.2.1ECh. 14 - Prob. 14.2.2ECh. 14 - Prob. 14.2.3ECh. 14 - Prob. 14.3.1ECh. 14 - Prob. 14.3.2ECh. 14 - Prob. 14.3.3ECh. 14 - Prob. 14.3.4ECh. 14 - Prob. 14.3.5ECh. 14 - Prob. 14.3.6ECh. 14 - Prob. 14.3.7ECh. 14 - Prob. 14.4.1ECh. 14 - Prob. 14.4.2ECh. 14 - Prob. 14.4.3ECh. 14 - Prob. 14.4.4ECh. 14 - Prob. 14.6.1ECh. 14 - Prob. 14.6.2ECh. 14 - Prob. 14.6.3ECh. 14 - Prob. 14.6.4ECh. 14 - Prob. 14.6.5ECh. 14 - Prob. 14.6.6E
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- MC Qu. 41-19 Underwrites are investment banking... Underwrites are investment banking firms that do which of the following? Multiple Choice Underwriters resell securities before the prospectus has been filed with and approved by the SEC. Underwriters determine whether the stock is valid and may be offered for sale to the general public. Underwriters purchase securities from an issuing corporation with the intent to sell them to brokerage houses, which them sell them to the public. Underwriters buy bonds from the issuing corporation before the issuing corporation sells its securities to the general public. 27 m A 2 Second create at least three different recoarch que ravearrow_forwardAssume the SEC approved the registration statement for a new securities issue this morning. Which one of the following statements must be true about this issue? Multiple Choice The red herrings can finally be distributed as their distribution was awaiting SEC approval. The waiting period started when the approval was received this morning. The SEC believes the issue will be a profitable investment for all purchases made at the offer price. The issuer is following all the required rules and regulations in regard to this issue. The final prospectuses have all been delivered or the SEC would not have approved the issue.arrow_forwardThe Securities and Exchange Commission’s mission is to regulate the securities markets by requiring full disclosure of information and preventing fraudulent activities. However, it does not regulate registration and reporting for every type of financial security. Required a. Briefly describe the markets and securities that are regulated by the SEC. b. Provide two examples of securities that are not subject to the SEC’s registration and reporting rulesarrow_forward
- The issuing of security goes through a number of processes. Once the SEC has commented on the registration statement and a preliminary prospectus has been distributed to interested investors, the investment bankers organize road shows and undertake book building in the process.Required: Explain the meaning and two (2) purposes of road shows as used in the preamble above.arrow_forwardWhich forms do most companies file with the SEC in connection with the offering of securities to the public?arrow_forwardThe Securities and Exchange Commission: Multiple Choice verifies the accuracy of the information contained in the prospectus. publishes red herrings on prospective new security offerings. examines the prospectus during the Green Shoe period. reviews registration statements to ensure they comply with current laws and regulations.arrow_forward
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