"A brokerage research department has been following the common stock of Acme Corporation and has prepared a favorable research report on the company. The brokerage firm is a member of a syndicate handling an issue of Acme common stock that is currently in registration. A registered representative wishes to send the research report to all of his customers. Which statement is TRUE?"

Complete question reads;

"A brokerage research department has been following the common stock of Acme Corporation and has prepared a favorable research report on the company. The brokerage firm is a member of a syndicate handling an issue of Acme common stock that is currently in registration. A registered representative wishes to send the research report to all of his customers. Which statement is TRUE?"

A. The report can be sent only if it has been approved by a supervisory analyst

B. The report can be sent only if it is accompanied or proceeded by, a preliminary prospectus.

C. The report can be sent only if it has been approved by the branch office.

D. The report cannot be sent until registration is effective.

D. The report cannot be sent until registration is effective.

Explanation:

Usually, under the guidelines of the Securities Act of 1933, no offer can be made to the customer unless a final registration has been made and effected by means of a prospectus.

Thus, the report cannot be sent until registration is effective..

answerattainable;