The Securities Act of 1933 imposes civil and criminal penalties for the making of fraudulent statements in a registration statement.

Question

Quizplus · Accepted Answer

The Securities Act of 1933 does indeed impose civil and criminal penalties for the making of fraudulent statements in a registration statement. This is to ensure that investors are provided with accurate and complete information before they decide to invest in a security. Any false or misleading statements in a registration statement can be seen as a violation of the Act, and can result in legal action being taken against the party responsible.

The Securities Act of 1933 Imposes Civil and Criminal Penalties