Free Flashcard From Chapter 28
Registration Process GOING EFFECTIVE
SEC approval of the final registration statement, issuer decides on an
effective date to begin selling; sets the issuance price; and prints final prospectus.
After the initial sale to underwriters, the stock is typically traded on an
exchange and the per share price may fluctuate greatly. Issuer only receives
funds from the initial sale and not subsequent sales by shareholders—so setting
the right issuance price is key to not leaving money on the table