Final answer:
A prospectus must be delivered for both listed and unlisted IPOs, serving as a formal legal document filled with the SEC that provides potential investors with essential information about the company.
Step-by-step explanation:
When a firm decides to go public through an initial public offering (IPO), it is making its first stock sale to the public, which could include various investors like individuals, mutual funds, insurance companies, and pension funds. The issuance of a prospectus is a critical step in this process, providing potential investors with essential information about the company's financial situation, business model, and risks involved with the investment.
The correct answer to the question regarding the delivery of a prospectus for a listed IPO versus an unlisted IPO is B) The prospectus must be delivered for both listed and unlisted IPOs. A prospectus is a formal legal document required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering for sale to the public. It is mandatory for both listed and unlisted IPOs as it helps protect investors by ensuring they are fully informed about the company's details before they decide to invest.