A:

A. The date a security's registration statement is granted an effective date lasting for one year.

B. The date the first transaction of an approved security takes place.

C. The date an issuer and underwriter agree to bring a security to market.

D. The date a security is due for re-registration, one year after the initial registration.


Correct answer: A

The effective date is defined as the actual date a security's registration is granted an effective date, lasting for one year after such. Note that on the cover of all prospectuses, it generally states that "these securities have not been approved or disapproved".

RELATED FAQS
  1. Do I own a stock as of the trade date or the settlement date?

    When it comes to buying shares, there are two key dates involved in the transaction. The first date is the trade date, which ... Read Answer >>
  2. What is the difference between record date and payable date?

    Learn how to ensure receiving stock dividends by the payment date on record and important dates to keep track of pertaining ... Read Answer >>
  3. How can I find out what date(s) I am supposed to be entitled to ex-dividends?

    Understand the various dates associated with payment of stock dividends and specifically how the determining ex-dividend ... Read Answer >>
Related Articles
  1. Investing

    What is a Settlement Date?

    A settlement date is the day a security trade must be settled.
  2. Investing

    Target Date Funds: More Popular, Cheaper Than Ever

    How target date funds can help investors weather volatility when it comes to saving for retirement.
  3. Financial Advisor

    Target Date Funds Can Be Customized: Here's How

    Target date funds will likely become a permanent fixture in the marketplace for the retirement plan sector. Here's how they have recently improved.
  4. Retirement

    The Unknown Dangers of Target Date Funds

    If they fit within your risk tolerance and have reasonable fees, target date funds can be an option.
  5. Investing

    Dissecting Declarations, Ex-Dividends and Record Dates

    Understanding the dates of the dividend payout process can be tricky. We clear up the confusion.
  6. Small Business

    Love by the Numbers: The Math Behind Online Dating (IACI)

    Behind the growing use of online dating are complex algorithms facilitating the matching process.
  7. Investing

    Ex-Dividend Date

    Not too sure what an ex-dividend date is? Find out here and learn how and when you can take advantage of a stock's dividend.
  8. Financial Advisor

    Target Date Funds and the Fiduciary Rule: What to Know

    Are you a fan of selling target date funds to clients? You may be interested in how the market for them will change with the new DoL fiduciary rule.
  9. Financial Advisor

    Index or Target Dates in 401(k)s: Which is Better? (VFINX, FUSEX)

    A common question is whether or not plan participants should choose index or target date funds in a 401(k). The answer depends on different scenarios.
RELATED TERMS
  1. Dated Date

    The date at which interest begins to accrue on a fixed-income ...
  2. Effective Date

    The date, declared by the Securities & Exchange Commission (SEC), ...
  3. Trade Date

    The month, day and year that an order is executed in the market. ...
  4. Transaction Date

    The date upon which a security or other financial instrument ...
  5. Initial Offering Date

    1. The date at which a security is first made available for public ...
  6. Trade Date Accounting

    A method company accountants and bookkeepers use to record transactions ...
Hot Definitions
  1. Dow Jones Industrial Average - DJIA

    The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange ...
  2. Revolving Credit

    A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is ...
  3. Marginal Utility

    The additional satisfaction a consumer gains from consuming one more unit of a good or service. Marginal utility is an important ...
  4. Contango

    A situation where the futures price of a commodity is above the expected future spot price. Contango refers to a situation ...
  5. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  6. Acid-Test Ratio

    A stringent indicator that indicates whether a firm has sufficient short-term assets to cover its immediate liabilities. ...
Trading Center