The Securities Act of 1933 focuses on:
A)all stock transactions.
B)the sales of existing securities.
C)the issuance of new securities.
D)insider trading.
E)Federal Deposit Insurance Corporation (FDIC)insurance.

Question

Quizplus · Accepted Answer

The Securities Act of 1933 focuses primarily on the issuance of new securities. Its purpose is to ensure that investors are provided with accurate and complete information about the securities being offered before they invest in them, thus increasing transparency in the securities market. It requires companies to submit a registration statement, which includes details about the company, its businesses, and financial condition, as well as the securities being offered. The Act also prohibits fraud in the sale of securities, making it illegal to make false or misleading statements to investors.

The Securities Act of 1933 Focuses On