To protect investors from fraudulent issues,a prospectus enforces laws against insider trading.

Question

Quizplus · Accepted Answer

A prospectus is a legal document provided to potential investors to disclose information related to an investment opportunity. It outlines important details about the company or fund, such as financial performance, risks, and objectives. However, while a prospectus can inform investors about potential risks, it does not actively enforce laws against insider trading. Insider trading is illegal and is regulated by government agencies such as the Securities and Exchange Commission (SEC).

To Protect Investors from Fraudulent Issues,a Prospectus Enforces Laws Against