Question

Gillcore is about to go public and begin selling securities. As a new public company, what steps must Gillcore take in order to stay in line with the requirements of the Securities Act?

Answer 1

Answer:

The obligations depends on what types of company it is and what type of securities it is offering.

Explanation:

Ideally, the company is required to file a registration statement (discloses all material information concerning the company) and prospectus with the SEC before it may offer its securities for sale. However, the obligations depends on what type of company it is and what type of securities it is offering. This is because SEC classify companies as smaller reporting and emerging growth company hence requires different disclosures that are not misleading in addition to filling registration documents and prospectus.