The legal document required by Securities Exchange Commission stating associated risks and detailed description of issues is classified as ______________?
Correct answer: A. prospectus
- A. prospectus
- B. stated document
- C. risk detailed document
- D. exchange commission document
Explanation
A prospectus is the formal disclosure document filed for a securities issue, describing the offering, issuer and associated risks. The other descriptions are not standard legal terms for this document.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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