5. In the Eurozone, the public offering of securities are carried out under the European Prospectus Directive

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5. In the Eurozone, the public offering of securities are carried out under the European Prospectus Directive and allows an issuer that has had a prospectus approved in an European Union member state to use the same prospectus for the securities in any other European Union member state. What is the rationale for the European Union allowing this—which is referred to as the “passport” mechanism?

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