Question

A customer opens an account at a brokerage firm to purchase securities in an offering. The customer must receive the disclosure document/prospectus:_________
A. no later than the confirmation of the sale
B. no later than the settlement of the transaction
C. within 7 days of the transaction
D. within 90 days of the transaction

Answer 1

Answer:

The correct option is A

Explanation:

NASAA stands for North American Securities Administrators Association,which describe or states that falling to provide or supply to customer, the purchasing securities in an offering.

It should be done at no later than the confirmation date of the transaction, either a preliminary prospectus or a final prospectus and an extra document, which altogether contained all the information stated in the final prospectus.

Therefore, the customer should receive the disclosure document on no later date than confirmation of the sale.