Question

In: Finance

The Securities Act of 1933 1) required complete disclosure of relevant financial information for publicly offered...

The Securities Act of 1933

1)

required complete disclosure of relevant financial information for publicly offered securities in the primary market.

2)

declared trading strategies to manipulate the prices of public secondary securities illegal.

3)

declared misleading financial statements for public primary securities illegal.

4)

required complete disclosure of relevant financial information for securities traded in the secondary market.

5)

all of the above

Solutions

Expert Solution

Option '1' is correct

The Securities Act of 1933, requires complete disclosure of relevant financial information for publicly offered securities in the primary market.

The securities act 1993 is the first major legislation regarding the sale of securities. The Act protect investors from fraudulent activities and against misrepresentation in the securities market. It also ensure transparency in the financial statements of corporations.


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