SIE practice questioneasySecurities Act of 1933 - Prospectus
A company is issuing new shares to the public for the first time. According to the Securities Act of 1933, what must the company provide to investors?
- AA prospectus disclosing financial and business information✓ Correct answer
- BA quarterly earnings report
- CA broker-dealer license
- DA market makers’ list
Explanation
Why A — A prospectus disclosing financial and business information
A prospectus is required for new securities offerings so investors can make informed decisions. Quarterly reports, broker licenses, or market makers' lists are not substitutes for the prospectus requirement.
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