Chapter 14, Problem 14.8Q

To determine

Introduction: SEC review and offering seek to provide potential investors full and fair disclosure of all substantial information necessary for assessing the securities’ risk and return expectations. The SEC will issue a customary review after the investigation, the review may result in acceptance or non-acceptance, if there exist any deficiencies a comment letter will be issued with a specification of deficiencies, the stated deficiencies must be corrected before the offering of securities to the public.

To define: The following terms (a) customary review (b) comment letter (c) red herring prospectus and (d) self-registration.