Question

The primary purpose of the Securities Act of 1933 is to:

a. Regulate broker-dealers engaged in interstate business.
b. Regulate margin requirements.
c. Regulate registration of new securities.
d. Regulate securities exchanges and the OTC market.

Answer 1

The primary purpose of the Securities Act of 1933 is to regulate the registration of new securities and promote transparency in the market.

Step-by-step explanation:

The primary purpose of the Securities Act of 1933 is to regulate the registration of new securities.

The act was enacted in response to the stock market crash of 1929 and the subsequent Great Depression. It aimed to restore investor confidence and protect the public from fraudulent and misleading activities in the securities market.

Under the Securities Act of 1933, companies issuing securities to the public are required to disclose relevant information about the securities, including financial statements, business operations, and risk factors. This allows potential investors to make informed decisions and promotes transparency in the market.