RegulationsQuestion 41 of 110
The principal purpose of the Securities Act of 1933 is to:
a.Regulate trading on exchanges and in the over-the-counter market
b.Establish the SEC and require broker-dealer registration
c.Require full and fair disclosure of material facts when securities are offered to the public for the first time
d.Set minimum capital requirements for investment companies
Explanation
The 1933 Act governs the primary market, requiring registration of new offerings and delivery of a prospectus so investors can judge the offering for themselves. Secondary market regulation, SEC creation, and broker-dealer registration come from the Securities Exchange Act of 1934. Fund capital requirements come from the Investment Company Act of 1940.
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Related questions on this topic
- Registration of a securities offering with the SEC means that:
- Which of the following is an exempt security under the Securities Act of 1933?
- During the cooling-off period for a registered offering, a representative may:
- The Securities Exchange Act of 1934 is best known for:
- Under the Investment Company Act of 1940, what portion of a registered fund's board must consist of directors who are not affiliated with the fund's adviser or underwriter?
- Before a newly formed open-end fund may offer shares to the public, the Investment Company Act of 1940 requires it to have:
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