Question

The Securities and Exchange Commission requires virtually all new public issues of corporate securities to be registered. As part of the registration process for a new security issue, the issuer must prepare a(n) _____.

Answer 1

Answer: Registration Statement.

Explanation: "The Registration Statement" is a set of documents which a corporation willing to sell securities (issuer) must file with the Security Exchange Commission before such securities can be offered to the public. The registration statement filed with the security exchange commission must include:

1) Description of the corporation

2) History of the corporation's operation.

3) Brief biography of the directors and officers of the corporation.

4) Financial statement of previous years.

5) Financial stake of all directors and people in charge of the corporation as well as names of shareholders who hold more than 10% of the corporation's securities.

6) The type of securities offered to the public and how the revenue from sale of such security will be spent.

7) History of legal proceedings that may have significant impact on the company.