Final answer:
The SEC does indeed regulate the issuance of securities to the public and mandates a prospectus for new offerings, which is particularly crucial during an initial public offering (IPO).
Step-by-step explanation:
The statement that the Securities and Exchange Commission (SEC) regulates U.S. companies that issue securities to the public and requires the issuance of a prospectus for any new security offering is true. The SEC's mandate is to regulate and supervise the sale of securities and the professionals who sell them, which includes ensuring transparency and fairness in the market.
When a company intends to go public through an initial public offering (IPO), it is obligated to provide a detailed prospectus to potential investors, outlining the investment's risks, objectives, and terms. This process helps to repay early-stage investors and provides capital for the company's growth, asserting significant protection for individual and institutional investors.