SIE Exam Question 839: Answer and Explanation

Question: 839

Which of the following is the first prospectus released for a new issue, and is intended to solicit indications of interest? It does not contain the new issue's price, and it is subject to change.

  • A. Pink sheet
  • B. Red herring
  • C. Shelf registration
  • D. Tombstone ad

Correct Answer: B

Explanation:

A red herring is the first prospectus released for a new issue and is intended to solicit indications of interest. It does not contain the new issue's price, and it is subject to change.

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