In the registration and sales of new securities issues, the SEC

a. Endorses a security’s investment merit by allowing its registration to “go effective.”

b. Provides a rating of the investment quality of the security.

c. Disallows the registration to “go effective” if it judges the security’s investment risk to be too great.

d. Allows all registrations to “go effective” if the issuing company’s external accountant is satisfied that disclosures and representations are not misleading.

e. Does not make any guarantees regarding the material accuracy of the registration statement.