Capital MarketsQuestion 301 of 398
What is the primary purpose of the Securities Act of 1933?
a.To regulate the secondary trading of securities on exchanges
b.To create the Securities and Exchange Commission
c.To require full and fair disclosure through registration of new securities offered to the public
d.To insure investors against losses in their brokerage accounts
Explanation
The Securities Act of 1933, often called the 'Paper Act' or 'Prospectus Act,' governs the primary market by requiring issuers to register new public offerings and provide investors with a prospectus. The Securities Exchange Act of 1934 later created the SEC and regulates the secondary market.
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