Delivery of the Prospectus
Another important part of the disclosure process for broker-dealers and agents is the delivery of the prospectus to interested investors. The prospectus, as described earlier, is a detailed description of a securities issue which must be provided to each investor who is interested in purchasing that security. To ensure that broker-dealers and agents live up to their obligations with regard to prospectus delivery, the SEC has established the following guidelines:
Prospectuses must be given for new issues only. After an issue is no longer considered to be new, the SEC assumes that there is enough information out in the market for investors to make informed decisions and the prospectus is no