Which term is a document filed with the SEC that describes an offering of securities for sale to the public?

Which term is a document filed with the SEC that describes an offering of securities for sale to the public?

• A. Capital Asset
• B. Yield
• C. Prospectus
• D. Dividends

Answer: (C)

A prospectus is the document filed with the SEC that describes an offering of securities for sale to the public. It provides the essential details about the issuer and the offering—who is issuing the securities, how much is being raised, how the funds will be used, the risks involved, and the financial statements. This filing is part of the registration process for new issues, ensuring investors have the information they need to evaluate the investment before purchasing. The other terms don’t fit because capital asset refers to a long-term asset used in operations, yield is the return on an investment, and dividends are distributions of profits to shareholders.

A prospectus is the document filed with the SEC that describes an offering of securities for sale to the public. It provides the essential details about the issuer and the offering—who is issuing the securities, how much is being raised, how the funds will be used, the risks involved, and the financial statements. This filing is part of the registration process for new issues, ensuring investors have the information they need to evaluate the investment before purchasing. The other terms don’t fit because capital asset refers to a long-term asset used in operations, yield is the return on an investment, and dividends are distributions of profits to shareholders.