One of the major purposes of federal security regulation is to
A) Establish the qualifications for accountants who are members of the profession
B) Eliminate incompetent attorneys and accountants who participate in the registration of securities to be offered to the public
C) Provide a set of uniform standards and test for accountants, attorneys, and others who practice before the Securities and Exchange Commission
D) Provide sufficient information to the investing public who purchases securities in the marketplace

Question

Quizplus · Accepted Answer

The main purpose of federal security regulation is to provide sufficient information to the investing public who purchases securities in the marketplace. This is achieved through mandatory disclosures, such as financial statements and other material information, to enable investors to make informed investment decisions. It also serves to protect investors from fraud and manipulative practices by securities issuers and other market participants. While establishing qualifications for accountants and lawyers and eliminating incompetent professionals are important goals, they are not the primary purpose of federal securities regulation. Similarly, while uniform standards for practitioners practicing before the SEC are important, they do not constitute the main purpose of federal securities regulation.

One of the Major Purposes of Federal Security Regulation Is