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Which of the following best defines the term prospectus? A preliminary prospectus distributed to prospective investors in a new issue of securities. A public issue

Which of the following best defines the term prospectus?

A preliminary prospectus distributed to prospective investors in a new issue of securities.

A public issue of securities in which securities are first offered to existing shareholders. Also called a rights offering.

Legal document describing details of the issuing corporation and the proposed offering to potential investors.

The creation and sale of securities on public markets.

The purchase of securities from the issuing company by an investment banker for resale to the public.

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