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The Biomedics Corporation will have its initial public offering of securities this year. Which one of the following laws govern an IPO?

a. The Securities Exchange Act of 1934
b. The Securities Investor Protection Act
c. The Investment Company Act of 1940
d. The Securities Act of 1933

1 Answer

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Final answer:

The Securities Act of 1933 is the law that governs an initial public offering (IPO).

Step-by-step explanation:

The law that governs an initial public offering (IPO) for a company like the Biomedics Corporation is The Securities Act of 1933. This act was established to enforce legal standards for the disclosure of information relevant to securities that are traded publicly, such as stocks and bonds. Its primary purpose is to ensure that investors have access to all significant information about securities being offered for public sale, and it mandates the registration of securities with the Securities and Exchange Commission (SEC), a practice that still forms the basis of modern financial transactions associated to IPOs.

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