ADVANCED FINANCIAL ACCOUNTING IA
ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Chapter 14, Problem 14.2.2E
To determine

Introduction: Security Act of 1933was created into law to protect interest of investors. The legislation has to main goals. To ensure more transparency to help investor make informed decisions and to establish law against fraudulent activities in the securities market. It is first major legislation regarding the sale of securities. The legislation addressed the need for better disclosure by requiring companies to register with the SEC.

To choose:The correct answer to determine during the review period registrant is prohibited from which of the following option.

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Section 11(b) of the Securities Act of 1933 provides that individuals can be sued and maybe liable for investors’ losses in connection with a public securities offering under which ofthese circumstances?a. The chairman of the board of directors performed a reasonable investigation of facts inconnection with preparing the section in the registration statement concerning the specification of the use of the proceeds of the offering.b. A consulting engineer performed a reasonable investigation and reported in the registration statement on the feasibility of construction of a roadway to be financed with theoffering proceeds.c. The president of the issuing entity had no reason to doubt the report of the consultingengineer, although the president did not perform a separate reasonable investigation ofher own.d. The officers of the issuing entity were relieved that the independent auditors did notmake an issue about the excessive valuation of inventory held to support construction inprogress
MC Qu. 41-05 Which of the following describes... Which of the following describes a prospectus? Multiple Choice A prospectus is an oral promise that assures the buyer of the veracity of the information in the registration statement. A prospectus an advertising tool that issuers distribute to potential investors. A prospectus is a document that describes the securities offered for sale and the SEC's approval of those securities. A prospectus is a collection of all of the company's financial documents. APR 27 A AW rave X
The issue of security througha number of processes .once the SEC has commented to interest on the registration statement and a preliminary prospectus has been distributed to interest invetors,the investment bankers organizeroad shows and undertake book building in the process.                     Required: Explain the meaning and two [2]purposes of road showa as used in the preamble above.
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