SIE practice questioneasySecurities Act of 1933 - Registration Process
Which of the following best describes the primary purpose of the Securities Act of 1933?
- ATo regulate trading of securities in the secondary market
- BTo require full and fair disclosure of material information about new securities issues✓ Correct answer
- CTo oversee banks and credit unions
- DTo enforce anti-money laundering statutes
Explanation
Why B — To require full and fair disclosure of material information about new securities issues
The Securities Act of 1933 governs new securities offerings and requires full and fair disclosure through registration statements and prospectuses. Secondary-market trading is mainly governed by the Securities Exchange Act of 1934.
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