Final answer:
The Securities Act of 1933 is the act that requires a prospectus to be provided for a new offering. It was established to ensure transparency and prevent fraud in the securities market, mandating the disclosure of essential information about an offering.
Step-by-step explanation:
The act that requires a prospectus to be provided for a new offering is the Securities Act of 1933. This act established legal standards for the disclosure of information relevant to publicly traded securities such as stocks and bonds.
Its main purpose is to ensure transparency in the financial statements of companies seeking to issue new securities, and to prevent fraud in the securities market.
The Securities and Exchange Commission (SEC), which was established by subsequent legislation, plays a crucial role in regulating and supervising the sale of securities, as well as overseeing the brokers, dealers, and bankers who sell them.
Under the Securities Act of 1933, a prospectus must be filed with the SEC, providing essential details about the investment offering, including financial statements and a description of the company's properties and business.