DEFINITION of SEC Form S-20
SEC Form S-20 is a filing with the Securities and Exchange Commission (SEC) under the Securities Act of 1933 that accompanies a prospectus for stock options. Also known as the Registration of Standardized Options Form, the filing will only be accepted by the SEC as long as the issuer has published an options disclosure document that meets the requirements of Rule 9b-1 of the Securities Exchange Act of 1934.
BREAKING DOWN SEC Form S-20
SEC Form S-20 and the prospectus that accompanies it provide details on a security's issuer, the amount of options to be issued, contact information for the security's agent, and the approximate date of commencement of the sale of the options to the public. Investors can find information about an option's risks, potential benefits, and company-specific information in the prospectus and in the options disclosure document, which is especially an important source of information about risks of trading equity derivatives.
What Does SEC Form S-20 Ask For?
There are seven items that an issuer must furnish to the SEC. They are: 1) description of registrant; 2) description of securities to be registered; 3) biographical information on directors and executives; 4) summary of legal proceedings; 5) information on legal options and experts; 6) financial statements; and 7) signed undertakings to continue to file financial statements to the SEC within 120 days of the end of each fiscal year, and to make available the options disclosure document to investors. Items 3-7 are not required to appear in the prospectus, so investors can find them as attachments to SEC Form S-20.