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NEW QUESTION: 1
John Berg, CFA, is the senior vice president in charge of the investment banking division of a large national brokerage firm. He is doing due diligence on a large company whose secondary offering of stock the brokerage firm is about to underwrite. Through his analysis of the audited financial statements of the company in the preliminary prospectus, which has already been distributed, Berg realizes that selling and general administrative expenses in the company's major division have suddenly increased from 1% of sales to 9% of sales. He finds there is no explanation in the prospectus of this material change in the company's operating expenses. Which is Berg's best course of action?
A. Do not recommend selling the stock because he obtained the information as a result of his position of trust and confidence with the company, and the information is material.
B. Immediately withdraw from the underwriting because otherwise he will be assisting in a violation of governing laws.
C. Insist that management discuss in the prospectus the change in operating expenses (full disclosure of material information).
Answer: C

NEW QUESTION: 2
You are using the knowledge base article search from the service area.
Which two search options are available? Each correct answer presents a complete solution.
A. Date Created
B. Language
C. Title
D. Subject
Answer: C,D

NEW QUESTION: 3
DRAG DROP
You need to recommend a monitoring solution for Proseware.
Which three actions should you recommend performing in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.

Answer:
Explanation:

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