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What are the three alternative methods of dealing with externalities? Briefly explain each one.
Securities Act of 1933
A U.S. federal law enacted to ensure more transparency in financial statements and to prevent fraud in the sale of securities, requiring that investors receive significant information about securities being offered for public sale.
Material Fact
An important fact that could influence a decision in a contract, negotiation, or legal case; its omission or misrepresentation could constitute fraud.
Omission
The act of leaving something out or not including something that should have been included.
Negligent Misconduct
Conduct that falls below the established standard of care, demonstrating a disregard for the safety or rights of others.
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