Series 7 Exam Question 171: Answer and Explanation

Question: 171

Which of the following is required on the registration statement for a new issue?

I. The capitalization of the issuer

II. Complete financial statements

III. What the money raised will be used for

IV. The names and addresses of all of the issuer's control persons

• A. I, II, and III
• B. I, III, and IV
• C. I, II, and IV
• D. I, II, III, and IV

Correct Answer: D

Explanation:

D. When a company decides to go public, it must file a registration statement with the SEC. The registration statement must include

The issuer's name and a description of its business

The names and addresses of all the issuer's control persons (in other words, officers, directors, and investors owning 10 percent or more of the issuer's securities)

What the money raised will be used for

The capitalization of the issuer

Complete financial statements

Whether there are any legal proceedings against the issuer