SIE practice questionmediumSecurities Act of 1933 - Prospectus Requirements
A broker sells shares in a registered IPO without delivering the required prospectus to the buyer. This is:
- AAcceptable for secondary offerings
- BPermitted if requested by the client
- CA violation of the Securities Act of 1933✓ Correct answer
- DA best execution requirement
Explanation
Why C — A violation of the Securities Act of 1933
The 1933 Act mandates prospectus delivery for new issues. An omission is a violation regardless of client’s wishes. Best execution and secondary issues are unrelated.
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