What is the waiting period in the context of securities issuance?

• A. The time for regulatory approval after filing a final prospectus
• B. The duration for gathering investor interest
• C. The period between the receipt of a preliminary and final prospectus
• D. The delay in issuing shares to the public

Answer: (C)

The waiting period in the context of securities issuance refers to the time interval between the filing of a preliminary prospectus with the regulatory authorities and the issuance of a final prospectus. During this phase, the issuer is allowed to gather indications of interest from potential investors but cannot enter into binding agreements to sell securities. This period is crucial because it ensures that the regulatory bodies have adequate time to review the disclosed information and provide feedback, as well as to ensure that the offering adheres to applicable regulations.

Understanding this concept is important for recognizing the structured processes in securities markets, which are designed to protect investors and maintain market integrity. The other options, while related to securities and funding processes, describe different aspects of the issuance process and do not specifically define the waiting period as outlined above.