Series 7 - General Securities Representative Exam

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All of the following information is true of a red herring EXCEPT

It is a preliminary prospectus
A
It describes the purpose for which the issuer is raising capital
B
It contains the final offering price
C
It contains the issuer’s history and financial status
D
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Explanations

The red herring is a preliminary prospectus. It contains the the purpose of fundraising, the issuer's history and financial status, but not the final offering price. The final offering price will be in the final prospectus

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