The Securities Act of 1933:
A) Regulates the auditing of financial statements for publicly-traded companies
B) Limits the financial liability of independent auditors except in the case of gross negligence
C) Regulates the initial offering of securities
D) Regulates which services may be performed for a publicly-traded company by an audit firm

Question

Quizplus · Accepted Answer

The Securities Act of 1933 regulates the initial offering of securities, requiring companies to disclose information about their securities and financial condition to potential investors. It also sets rules for public offerings and requires registration of securities with the SEC. The Act was passed in response to the stock market crash of 1929 and aimed to restore investor confidence in the markets by providing transparency and accountability.