Which of the following is NOT a purpose of federal securities regulation?
A) To ensure that only worthwhile securities are sold in interstate commerce.
B) To ensure adequate disclosure by issuers of securities.
C) To ensure that inside information is not abused.
D) To prevent the use of fraud in the marketing of securities.

Question

Quizplus · Accepted Answer

Federal securities regulation, such as the Securities Act of 1933 and the Securities Exchange Act of 1934, primarily aims to ensure transparency, prevent fraud, and protect investors by requiring adequate disclosure of information and preventing the abuse of inside information. It does not aim to judge the worthiness or quality of the securities themselves, which is determined by the market and investors.

Which of the Following Is NOT a Purpose of Federal