Question

A(n) ________ represents a condensed version of the registration statement that enables prospective investors to evaluate a stock for possible purchase.

Answer 1

Answer:

The correct answer is letter "D": Prospectus.

Explanation:

The Securities and Exchange Commission (SEC) requires any organization that raises money from potential investors by stock sales to send a prospectus to the SEC and subsequently to potential investors. The prospectus informs investors of the company's history, management biographies, financial statements, best and worse case-scenarios of company performance, and any other information that will help investors make an informed decision about the investment.

Answer 2

Answer:

Prospectus

Explanation:

The aim of issuing the prospectus with respect to the sale of the stock and bonds plus it also includes important information for the investors.  

It comprises all information with regard to the company profile, returns on the stock and bonds, etc so that the purchase of the stocks and the bonds could be made by the investors and the company could earn maximum profit.