Securities RegistrationQuestion 37 of 100
Which statement about registration by qualification is correct?
a.It is available to any issuer, requires the most detailed disclosure, and becomes effective when the Administrator so orders
b.It is available only to issuers listed on a national exchange
c.It becomes effective automatically two business days after filing
d.It may be used only when a federal registration statement has also been filed
Explanation
Qualification is the most demanding method, requiring extensive information about the issuer, its officers, its capitalization, and the use of proceeds, and effectiveness comes only when the Administrator orders it. It is the universal method, available to any issuer, and is typical for purely intrastate offerings with no federal filing. Automatic effectiveness on a short clock describes notification, not qualification.
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