SIE Exam Question 894: Answer and Explanation

Question: 894

When a corporation files a registration with the SEC in an effort to sell shares to the public, the period of time between the filing of the registration statement and its effective date is referred to as the:

• A. cooling-off period.
• B. prospectus period.
• C. registration period.
• D. terminable interest period.

Correct Answer: A

Explanation:

When a corporation files a registration with the SEC in an effort to sell shares to the public, the period of time between the filing of the registration statement and its effective date is referred to as the cooling-off period.