The Provisions of Section 17(a) of the 1933 Act

question 1

Multiple Choice

The provisions of Section 17(a) of the 1933 Act:

• A) primarily allow for a private right of action for persons injured by the act.
• B) make it unlawful to engage in any transaction, practice, or course of business that operates as deceit upon the issuer.
• C) make it unlawful in the offer or sale of any securities to obtain property by any statement that omits a material fact without which the information is misleading.
• D) None of these are true.

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Definitions:

Excess Capacity

The situation where a company's production capabilities exceed the current demand for its products or services, leading to underutilized resources.

Utilization Facility

A facility used primarily for the processing, conversion, or treatment of resources or materials, often in the energy sector.

Demand Fluctuations

Variations in customer demand for products or services over a certain period of time.

Net Receivables

The total money owed to a company by its customers minus any provisions for bad debt.