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NEW QUESTION: 1
Which of the following activities are permitted during the "cooling off" period associated with a new offering?
I. A preliminary prospectus may be provided to prospective investors.
II. The security can be registered in any states in which it will be sold.
III. The management of the issuing firm may give interviews in which they discuss the market for their products and future revenue expectations.
IV. The underwriter of the issue may run a tombstone advertisement in the Wall Street Journal to announce the upcoming offering.
A. I and IV only
B. I, III and IV only
C. I, II and IV only
D. I only
Explanation: Only the activities described in Selections I, II, and IV are permitted during the "cooling off" period associated with a new offering. A preliminary prospectus can be provided to prospective investors; the security can be registered in any states in which it will be sold, and the underwriter of the issue can run a tombstone advertisement in the Wall Street Journal, or any other publication for that matter. The management of the issuing firm may not, however, give interviews in which they discuss future revenue expectations, among other things.