SIE practice questionhardSecurities Act of 1933
If a firm omits material facts from the registration statement and prospectus when issuing new securities, it is violating:
- AMargin account rules
- BAnti-fraud provisions of the Securities Act of 1933✓ Correct answer
- CERISA reporting requirements
- DFINRA arbitration guidelines
Explanation
Why B — Anti-fraud provisions of the Securities Act of 1933
The Securities Act of 1933 requires disclosure of all material facts in registration and prospectus. Omission constitutes fraud, subject to enforcement. Margin, ERISA, and arbitration rules are unrelated.
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