The Securities Act of 1933 Has Two Basic Objectives, One

question 42

Multiple Choice

The Securities Act of 1933 has two basic objectives, one of which is to:

• A) extend protection to investors trading in outstanding, issued securities.
• B) grant the SEC power to impose administrative, civil penalties up to $600,000.
• C) regulate disclosure requirements on publicly held corporations.
• D) prohibit misrepresentation, deceit, and other fraudulent acts and unfair practices in the sale of securities generally, whether or not they are required to be registered.

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Definitions:

Bureaucracy

An organizational structure in which tasks and responsibilities are regulated through a defined hierarchy and administrative system.

Hierarchy of Authority

The arrangement of individuals within a system or organization in a ranked order of authority, often forming a pyramid structure with a single person or group at the top.

Congressional Legislation

Laws and statutes passed by the United States Congress, which consists of the Senate and the House of Representatives.

Constitutional Amendments

Changes or additions made to the U.S. Constitution, requiring a significant consensus for ratification as outlined in the document itself.