The registration process

Question 1

Question #4 (AICPA.930529REG-BL)
Which of the following disclosures must be contained in a non-WKSI issuer’s securities-registration statement filed under the Securities Act of 1933?
A. A list of all existing stockholders.
B. The principal purposes for which the offering proceeds will be used.
C. A copy of the corporation’s latest proxy solicitation statement.
D. The names of all prospective accredited investors.

Answer 1

B. The principal purposes for which the offering proceeds will be used.

The registration statement required for all non-exempt securities must contain the following: a description of the security, how the corporation will use the proceeds from the sale, a description of the registrant’s business and management, and a financial statement. These disclosures are meant to assist investors in evaluating risk.

Wrong Answer

C. A copy of the corporation’s latest proxy solicitation statement.

The registration statement required for all non-exempt securities must contain the following: a description of the security, how the corporation will use the proceeds from the sale, a description of the registrant’s business and management, and a financial statement. These disclosures are meant to assist investors in evaluating risk. A proxy solicitation statement is unnecessary for this purpose.