Question

In: Finance

The Securities Act of 1933 focuses on: A. all new and outstanding stock transactions. B. the...

The Securities Act of 1933 focuses on:

A. all new and outstanding stock transactions.

B. the issuance of new securities.

C. the redemption of outstanding debt.

D. insider trading.

E. Federal Deposit Insurance Corporation (FDIC) insurance.

Solutions

Expert Solution

The Securities Act of 1933 focuses on:

Correct Option: B. the issuance of new securities.

It is an act passed regarding issuance / sales of the securities. The purpose of Securities Act of 1933 is that the investor should get complete and accurate information of the security he or she is purchasing. The basic purpose of the law is to protect the investor’s interest (protecting investors from potential fraud).


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