SIE Exam Question 274: Answer and Explanation

Question: 274

All of the following are full disclosure documents used in the sale of securities with the exception of:

• A. Official Statement
• B. Notice of Sale
• C. Offering Circular
• D. Prospectus

Correct Answer: B

Explanation:

B: A notice of sale is an advertisement published by a municipality in order to get bids from interested broker-dealers who wish to underwrite the sale of that issuer's upcoming bond offering. The other answers are different names for documents which make full disclosure to purchases of securities.