Question

Squeaky Clean Corporation wants to make an offering of securities to the pub¬lic. This offering is not exempt from registration under the Se¬curities Act of 1933. Before Squeaky sells its securities, it must provide in¬vestors with

a. a forward-looking financial forecast.
b. an investment contract.
c. a prospectus.
d. samples of its products.

Answer 1

c. a prospectus.

Step-by-step explanation:

A prospectus is a formal report authorized by - and submitted to the Securities and Exchange Commission (SEC) that offers information of an investment proposal for sale to the general public.

For inventory, bond and mutual fund product lines, a prospectus is submitted.

A prospectus is often used to help shareholders make an investment decision that is more educated.