A. It is a summary of the registration statement.

B. A preliminary version is often called a "red herring".

C. It provides information about the issuing company, its management and the securities to be offered.

D. It is made public shortly after it is submitted to the FINRA and posted to its website.

Correct answer: D
The prospectus is actually submitted to the Securities and Exchange Commission (SEC). The SEC is responsible for ensuring fairness for the individual investor and FINRA is responsible for overseeing virtually all U.S. stockbrokers and brokerage firms. In the grand scheme of things, FINRA is overseen by the SEC.

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  1. Red Herring

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  2. Financial Industry Regulatory Authority - FINRA

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  3. Preliminary Prospectus

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  4. SEC Form S-20

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  6. Final Prospectus

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