The basic purpose of the securities laws of the United States is to regulate the issue of investment securities by
A)Providing a regulatory framework in those states which do not have their own securities laws
B)Requiring disclosure of all relevant facts so that investors can make informed decisions
C)Prohibiting the issuance of securities which the Securities and Exchange Commission determines are not of investment grade
D)Channeling investment funds into uses which are economically most important
E)Ensuring that all shareholders have the right to vote in the election of directors

Question

Quizplus · Accepted Answer

The primary purpose of the securities laws of the United States is to ensure that companies issuing investment securities disclose all relevant information so that investors can make informed decisions. This is achieved through mandatory disclosure requirements and other regulations designed to protect investors. While the other choices have some basis in reality, disclosure is the primary focus of securities laws.

The Basic Purpose of the Securities Laws of the United