The provisions of Section 17(a) of the 1933 Act:
A) primarily allow for a private right of action for persons injured by the act.
B) make it unlawful to engage in any transaction, practice, or course of business that operates as deceit upon the issuer.
C) make it unlawful in the offer or sale of any securities to obtain property by any statement that omits a material fact without which the information is misleading.
D) None of these are true.

Question

Quizplus · Accepted Answer

Section 17(a) of the Securities Act of 1933 makes it unlawful in the offer or sale of securities to employ any device, scheme, or artifice to defraud, or to obtain money or property by means of any untrue statement of a material fact or any omission of a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading. This provision is aimed at preventing fraud in the sale of securities.

The Provisions of Section 17(a) of the 1933 Act