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After the stock market crash in 1 9 2 9 , the Securities and Exchange Commission ( SEC ) was established to protect investors from
After the stock market crash in the Securities and Exchange Commission SEC was established to protect investors from fraudulent investments and to regulate the securities industry.
Based on your understanding of SEC regulations, which of the following statements are true?Check all that apply.
The SEC requires that all marketing and promotional material be distributed, along with the prospectus, to all prospective investors.
As soon as a company decides to sell stock to prospective investors, it starts to advertise in order to increase the marketability of its new shares.
Private placements need to be registered with the SEC at least days before they are issued.
The SEC evaluates the information given in the prospectus and has the right to delay or stop a public offering if the information is misrepresented or if material facts are not included in the prospectus.
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