When should a prospectus be published after approval?

The correct answer emphasizes the importance of timing in the publication of a prospectus following its approval. A prospectus must be published as soon as practicable and prior to any trading activities. This ensures that potential investors have access to critical information about the offering before they make any investment decisions. The principle behind this is to promote transparency and allow investors to make informed choices based on the detailed disclosures provided in the prospectus.

Publishing the prospectus promptly after approval is critical because it helps maintain market integrity and investor confidence, ensuring that all participants are operating with the same level of information. This requirement also aligns with regulatory mandates designed to protect investors and uphold fair market practices.

Alternative choices suggest varying timings or conditions regarding the publication of the prospectus. However, the key regulatory aim is to strike a balance between swift dissemination of crucial information and ensuring that investors are adequately informed before they engage in trading activities. Thus, "as soon as practicable and prior to trading" serves to uphold these principles effectively.