Capital MarketsQuestion 353 of 398
An issuer sells commercial paper that matures in 180 days. Under the Securities Act of 1933, this short-term instrument is:
a.Required to file a full registration statement
b.Prohibited from being sold to the public
c.Exempt from registration because it is short-term corporate debt maturing in 270 days or less
d.Only available through a Regulation A offering
Explanation
Commercial paper and other short-term corporate debt with a maturity of 270 days or less is exempt from registration under the Securities Act of 1933. This exemption allows corporations to raise short-term financing efficiently without the full registration process.
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