A document made available to prospective security buyers that describes the firm and a new security issue. ___________ are responsible for ensuring that all the information in the prospectus accurately represents the facts.
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A. B. C. D.A
The document referred to in the question is known as a prospectus, which is a legal document that companies must provide to potential investors before they can sell securities such as stocks or bonds. The purpose of the prospectus is to provide potential investors with relevant information about the company and the securities being offered so that they can make informed investment decisions.
The answer to the question is A. Federal agencies. In the United States, the Securities and Exchange Commission (SEC) is the primary federal agency responsible for regulating the securities industry and ensuring that investors are provided with accurate and complete information about securities being offered for sale. The SEC requires companies to file a registration statement with the agency before they can offer securities for sale to the public. The registration statement includes a prospectus that must contain certain required disclosures and be accurate and complete in all material respects.
The SEC has the authority to review and comment on registration statements and prospectuses filed by companies, and to require revisions or additional disclosures as necessary to ensure that the information provided is accurate and complete. In addition, the SEC can take enforcement action against companies or individuals who provide false or misleading information in a prospectus or other securities offering document.
Private parties, local governments, and state governments do not have the authority or responsibility for ensuring the accuracy of information in a prospectus. However, investors can take legal action against companies and individuals who provide false or misleading information in a prospectus or other securities offering document, and state securities regulators may also have a role in enforcing securities laws within their jurisdiction.