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

Question

Quizplus · Accepted Answer

The securities laws of the United States, such as the Securities Act of 1933 and the Securities Exchange Act of 1934, require companies to disclose all relevant information about their securities, including risks, financial statements, and management background, so that investors can make informed decisions. The laws also regulate the trading of securities and the activities of brokers and other market participants. The primary goal is to protect investors from fraudulent or unfair practices and to promote transparency and fairness in the securities markets. While the laws may indirectly channel investment funds into important economic uses, this is not the primary purpose.

The Basic Purpose of the Securities Laws of the United