What occurs during the waiting period of a registration statement?

During the waiting period of a registration statement, while the registration is pending with the SEC, offers can indeed be made, but actual sales of the securities cannot take place. This period serves as a time for the SEC to review the registration statement and ensure all necessary information is disclosed to potential investors.

During this time, companies can communicate with potential investors and gauge interest in the upcoming securities offering, which allows for better planning and resource allocation. However, because the registration statement has not yet received SEC approval, the securities cannot be sold or delivered, ensuring that the public does not invest based on potentially incomplete or unapproved information.

The other options do not accurately reflect the activities allowed during this waiting period. Sales cannot occur; therefore, investors cannot sell the securities immediately, and SEC approval is not guaranteed simply by entering this phase. Additionally, the scope of communication is broader than just advertisements, encompassing various forms of investor engagement without finalizing sales.