SIE Exam Question 361: Answer and Explanation

Question: 361

The SEC has declared a new public offering effective. This indicates that

• A. the SEC has verified the issuer's information.
• B. the SEC approves of the new issue.
• C. the SEC recommends the issuer's securities for purchase.
• D. the SEC has cleared the issuance for public sale.

Correct Answer: D

Explanation:

D - The SEC never approves or disapproves of securities. Instead, the SEC clears the distribution for public sale.