The SEC reviews the issuer’s registration statement and the prospectus, but does not guarantee the accuracy or adequacy of the information. The SEC disclaimer must appear on the cover of all prospectuses and states: “These securities have not been approved or disapproved by the SEC nor have any representations been made about the accuracy of the adequacy of the information.”



Need Help Passing Your Series 57 Exam?





Misrepresentations

Related Articles
  1. Investing

    What's a Prospectus?

    The Security and Exchange Commission (SEC) requires that any company raising money from potential investors through the sale of securities must file a prospectus with the SEC and then provide ...
  2. Investing

    Interpreting A Company's IPO Prospectus Report

    Learn to decipher the secret language of the IPO prospectus report - it can tell you a lot about a company's future.
  3. Financial Advisor

    A Review of SEC Enforcement Cases in 2016

    The SEC set a new record in 2016 for the number of enforcement actions it brought.
  4. Investing

    An Insight on the Prospectus of Corporate Bonds

    Making a well-informed decision with respect to buying a corporate bond involves reading the significant facts and details of the prospectus document.
  5. Personal Finance

    What's the SEC?

    The Securities and Exchange Commission (SEC) is an independent agency of the United States government. The mission of the SEC is to enforce securities laws passed by congress. These laws aim ...
  6. Personal Finance

    Policing The Securities Market: An Overview Of The SEC

    Find out how this regulatory body protects the rights of investors.
  7. Financial Advisor

    SEC on Advisor Performance Claims: 'Show Your Work'

    The SEC will now require advisors to keep records of any documentation that is distributed to clients that contains performance numbers of any kind.
  8. Financial Advisor

    What to Know About the SEC's Third-Party Exam Rule

    The SEC has given a proposal to board members that calls to outsource the advisor exam process to a third party, but the issue currently has no timeline.
  9. Financial Advisor

    How the SEC Wants to Improve Disclosure of Fees

    The SEC wants investment companies to alter the way they disclose fees for mutual funds in the hopes to help clients know how much they're paying.
  10. Financial Advisor

    More Reasons for Advisors to Be Wary of the SEC

    It looks like the SEC is expanding its oversight regarding RIA compliance in the coming months. Here's why RIAs should expect more federal check-ins.
Frequently Asked Questions
  1. What are the Differences Among a Real Estate Agent, a broker and a Realtor?

    Learn how agents, realtors, and brokers are often considered the same, but in reality, these real estate positions have different ...
  2. What is the difference between amortization and depreciation?

    Because very few assets last forever, one of the main principles of accrual accounting requires that an asset's cost be proportionally ...
  3. Which is better, a fixed or variable rate loan?

    A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest ...
  4. What is the 1003 mortgage application form?

    Learn about the 1003 mortgage application form, what information it requires and why this form is the industry standard for ...
Trading Center