SIE practice questioneasySecurities Act of 1933
Which act primarily governs the registration of new securities offerings and prohibits fraudulent sales practices in those offerings?
- ASecurities Exchange Act of 1934
- BSecurities Act of 1933✓ Correct answer
- CInvestment Company Act of 1940
- DTrust Indenture Act of 1939
Explanation
Why B — Securities Act of 1933
The Securities Act of 1933 governs new securities offerings and prohibits fraud in their sale. The 1934 Act regulates secondary trading; the 1940 Act concerns investment companies. The Trust Indenture Act covers corporate bonds.
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