exam questions

Exam Series 7 All Questions

View all questions & answers for the Series 7 exam

Exam Series 7 topic 1 question 140 discussion

Actual exam question from FINRA's Series 7
Question #: 140
Topic #: 1
[All Series 7 Questions]

The registration requirements of the federal securities acts are intended to protect the public interest by providing for a prospectus on new issues and its review by the SEC.
Which of the following is the true of this process?

  • A. It provides the SEC with adequate information on which to base approval for new issues
  • B. It does not imply SEC approval of the issue
  • C. It guarantees purchasers against an untrue statement of material fact or an omission of material fact
  • D. It relieves participating underwriters from any further responsibility for checking essential facts before recommending purchase to the customers
Show Suggested Answer Hide Answer
Suggested Answer: A 🗳️
It does not imply SEC approval of the issue. The SEC does not approval an issue. It only attempts to see that sufficient information has been provided from which a proper investment determination may be made.

Comments

Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.
Switch to a voting comment New
SoIarBeam
11 months, 3 weeks ago
Based on the information provided the correct answer is B.
upvoted 1 times
...
Community vote distribution
A (35%)
C (25%)
B (20%)
Other
Most Voted
A voting comment increases the vote count for the chosen answer by one.

Upvoting a comment with a selected answer will also increase the vote count towards that answer by one. So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.

SaveCancel
Loading ...
exam
Someone Bought Contributor Access for:
SY0-701
London, 1 minute ago