MC Qu. 41-05 Which of the following describes... Which of the following describes a prospectus? Multiple Choice 1 A prospectus is an oral promise that assures the buyer of the veracity of the information in the registration statement. A prospectus is an advertising tool that issuers distribute to potential investors. A prospectus is a document that describes the securities offered for sale and the SEC's approval of those securities. A prospectus is a collection of all of the company's financial documents.

n reference to intercompany transactions between an investor and an investee, when the investor can significantly influence the investee, which of the following statements is correct, assuming that the investor is using the equity method? Question 9Answer a. As long as the investor recognizes the effects of the transaction in its financial statements, it is notrequired to provide any additional disclosures. b. In reporting its share of earnings and losses of an investee, the investor must eliminate the effect of profits and losses on the intercompany transactions until they are realized. c. None of the others are correct. d. There is the presumption of arms-length bargaining between the related parties.

Define each of the following terms:d. Securities and Exchange Commission (SEC); registration statement; shelfregistration; margin requirement; insiders

e) describe the expiration and exercise procedures commonly used in derivatives exchanges.  f) describe over-the-counter (OTC) derivatives trading and the risks involved in OTC trading versus exchange trading.    g) discuss the role of the clearinghouse in derivatives trading.  h) explain the concepts of initial margin, maintenance margin, and margin call.