SIE (Securities Industry Essentials) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the SIE Exam with flashcards and multiple choice questions, each question offers hints and thorough explanations. Gear up for your exam now!

Start Multiple Choice Practice Test
Start Flash Cards

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which of the following is true of the cooling-off period?

  1. A final prospectus must be submitted

  2. Trading of the security is allowed

  3. A preliminary prospectus may be submitted

  4. No promotional efforts may be made

The correct answer is: A preliminary prospectus may be submitted

A final prospectus must be submitted during the pre-selling period. This is the document that contains important information about a security, such as its risks, terms, and financial data. While trading of the security is allowed during the cooling-off period, it is not required to have a final prospectus submitted. Additionally, promotional efforts may be made during this period, making option D incorrect. The cooling-off period is a time frame between the pre-selling period and the effective date of the offering, during which a preliminary prospectus may be submitted and used to solicit interest from potential investors. Therefore, option C is the only correct statement about the cooling-off period.

More Questions Like This