What document is submitted to the SEC to obtain permission for selling a security on a public exchange?

The registration statement is a document required by the Securities and Exchange Commission (SEC) for companies seeking to offer securities for sale to the public. This statement serves a critical role in the registration process, providing detailed information about the company's business, financials, management, and the specific securities being offered. By filing the registration statement, a company complies with legal requirements designed to protect investors by ensuring transparency and full disclosure.

The registration statement includes various components, such as the prospectus, which is the part that potential investors will receive to help them make informed decisions. The SEC reviews this statement to ensure compliance with regulatory standards before the securities can be legally sold on public exchanges.

In contrast, the other options do not serve the same purpose in the initial process of selling securities to the public. The prospectus is a marketing document that is part of the registration statement but is not sufficient on its own. An annual report provides information about a company’s financial performance over the year and is usually not required specifically for a new security offering. An offering memorandum is often used in private placements to provide information to potential investors but does not apply to public offerings registered with the SEC.

Thus, the registration statement is the appropriate document that fulfills the requirements for permission to sell a security