SIE Exam Question 500: Answer and Explanation

Question: 500

A red herring given to a client during the cooling-off period will contain all of the following, except:

• A. Use of proceeds.
• B. Proceeds to the company.
• C. A notice that all the information is subject to change.
• D. Biographies of officers and directors.

Correct Answer: B

Explanation:

B: All of the answers listed will appear in the preliminary prospectus, except the offering price and the proceeds to the company.