SIE Knowledge of Capital Markets Question 12: Answer and Explanation

Question: 12

Which of the following is typically issued by a governmental entity other than a state?

• A. Prospectus
• B. Official statement
• C. Program disclosure document
• D. Partnership agreement

Correct Answer: B

Explanation:

B: An official statement is typically issued by a state or municipality issuing a municipal security. Choice A, a prospectus, is typically offered by a private rather than public or governmental entity. Choice C is typically offered by a state regarding a 529 college saving plan. Choice D is typically offered by a partnership.