Question
After the stock market crash in 1929, the securities and Exchange. Commission was established to protect investors from fraudulent investments and to regulate the securities
After the stock market crash in 1929, the securities and Exchange. Commission 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 prospectus, to all prospective investors
-The SEC evaluates the information given in the prospectus and has the right to delay or stop a public offering if the information misrepresented or if the material facts are not included in the prospectus
-The SEC does not allow companies to specify or limit which groups or types of investors to whom a company can issue securities
- The SEC has jurisdiction over interstate public offerings of any account
2. In most public offerings, investors are classified based on their profiles. Individual investors with relatively less net worth than senior executives, directors, and high wealth investors are referred to as (accredited or non accredited investors)
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