Stocks Beginner: The Stock Prospectus

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1.
The stock prospectus is an abridged version of the information a company files with the _______.
Choose wisely. There is only one correct answer.
Securities and Exchange Commission. The prospectus must be filed with the SEC, which enforces securities disclosure provisions.
2.
All of the following information is available in a stocks preliminary prospectus except _______.
Choose wisely. There is only one correct answer.
The offering price. The offering price is not included in the preliminary prospectus, which is published before the price is finalized.
3.
All of the following may be found on the cover of a stock prospectus except _______.
Choose wisely. There is only one correct answer.
Risk factors. Risk factors are not spelled out on the cover of the prospectus, but all of the other listed information may be found there.
4.
While browsing XYZ Co.s prospectus, you just read that three of its board members are related to each other. Which section were you reading?
Choose wisely. There is only one correct answer.
Management. The management section of the prospectus will provide background information on board members.
5.
Where in a prospectus would you look to find out how many shares of stock were included in the companys offering?
Choose wisely. There is only one correct answer.
All of the other sections. The cover, summary, and "Description of Capital Stock" sections each include the number of new shares being offered.