After the stock market crash in 1929, 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. Companies are liable for all of the information presented in the prospectus. 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 20 days before they are issued. The red herring prospectus can be distributed to potential investors, but the sale of the issuing company's stock cannot be finalized during the 20-day wait period. In most public offerings, investors are classified based on their profiles. Individuals of high net worth, institutional investors, senior executives, and directors of companies are referred to as accredited investors A company has to grow to a certain level before it can successfully raise capital by selling its stock to the public. At different stages, a company has different financing needs; it raises capital by reaching out to different kinds of investors. Consider this case: Mark Zuckerberg started Facebook, a social networking website, in February 2004. He recruited his friends Dustin Moskowitz and Chris Hughes to grow the company. In the summer of 2004, their first investor, Peter Thiel-the cofounder of PayPal-invested $500,000 into Facebook for a 10.2% stake in the company. In late 2004, Facebook was valued at $100 million and received funding of $12.7 million from Accel Partners. Facebook kept growing and received $25 million in funding from Greylock Partners and Meritech Capital. After several acquisition attempts and rounds of funding, Microsoft invested $240 million into Facebook for 1.6% of the company in October 2007. Based on your understanding of investors in different stages of a start-up's financial cycle, which of the following companies or individuals would be referred to as an angel investor? Meritech Capital Dustin Moskowitz Peter Thiel Accel Partners