Question

"Which of the following states may be made by an issuer selling securities to the public that are registered with the Administrator? A. The Administrator has cleared this issue for sale to the public B. The Administrator has passed on the adequacy of the information provided in the prospectus C. The Administrator has approved the accuracy of the information contained in the prospectus D. The Administrator has affirmed the merits of the security as an invesement"

Answer 1

When registering securities with the Administrator, issuers can't state that the Administrator has cleared the sale, approved the accuracy of the information, or affirmed the security's investment merit. The Administrator's role is to enforce compliance with security laws.

Step-by-step explanation:

When an issuer is selling securities to the public that are registered with the Administrator, they may make certain statements. However, they cannot claim that the Administrator has cleared this issue for sale to the public, or that the Administrator has affirmed the merits of the security as an investment, approved the accuracy of the information in the prospectus, or passed on the adequacy of the information in the prospectus. The administrator's role is to enforce and ensure compliance with security laws, not to approve or validate individual securities offerings. Any such claims could be misleading and potentially violate securities law.

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