SIE - Securities Industry Essentials Exam

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Which of the following is true of a new issue?

A broker-dealer can accept payment from a new customer when the registration is effective.
A
A broker-dealer can accept payment from a new customer during and toward the end of the cooling off period.
B
A broker-dealer can accept payment from a new customer when the red herring is delivered.
C
A broker-dealer can accept payment from a new customer only if the preliminary prospectus is amended.
D
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Explanations

The registration must first be effective in order for a broker-dealer to accept payment from a customer. The other 3 are incorrect.

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