Bandex Inc. has been in business for 15 years. The company has compiled a record of steady but not spectacular growth. Bandex's engineers have recently perfected a product that has an application in the small computer market. Initial orders have exceeded the company's capacity and the decision has been made to expand.

Bandex has financed past growth from internally generated funds, and since the initial stock offering 15 years ago, no further shares have been sold. Bandex's finance committee has been discussing methods of financing the proposed expansion. Both short-term and long-term notes were ruled out because of high interest rates. Mel Greene, the chief financial officer, said, "It boils down to either bonds, preferred stock, or additional common stock." Alice Dexter, a consultant employed to help in the financing decision, stated, "Regardless of your choice, you will have to file a registration statement with the SEC."

Bob Schultz, Bandex's chief accountant for the past five years, stated, "I've coordinated the filing of all the periodic reports required by the \(\mathrm{SEC}-10-\mathrm{Ks}, 10-\mathrm{Qs}\), and \(8-\mathrm{Ks}\). I see no reason I can' \(\mathrm{I}\) prepare a registration statement also."

\section*{Required}

a. Identify the circumstances under which a firm must file a registration statement with the Securities and Exchange Commission (SEC).

b. Explain the objectives of the registration process required by the Securities Act of 1933 .

c. Identify and explain the SEC publications Bob Schultz would use to guide him in preparing the registration statement.