SIE practice questionmediumSecurities Act of 1933 and Account Types
A customer opens an account to purchase new shares in an IPO. Which regulation ensures the customer receives a prospectus?
- ASecurities Exchange Act of 1934
- BInvestment Company Act of 1940
- CSecurities Act of 1933✓ Correct answer
- DRegulation D
Explanation
Why C — Securities Act of 1933
The Securities Act of 1933 governs the registration of new issues and requires delivery of a prospectus. The 1940 Act is for investment companies, 1934 Act is about trading and reporting, Reg D is for private placements.
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