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:

Lower Tailed Test

A statistical hypothesis test where the critical area of a distribution is in its lower tail, used to determine if a sample mean is significantly lower than a known or assumed population mean.

Test Statistic

A statistic calculated from sample data, used to determine whether to reject the null hypothesis in a hypothesis test.

Null Hypothesis

The null hypothesis is a statement or assumption that there is no effect or no difference, serving as the default or starting assumption in statistical hypothesis testing.

Normal Approximation

A method used in statistics to approximate binomial distributions with normal distributions when sample sizes are large, under certain conditions.