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:

Financial Capital

Economic resources measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or to provide their services.

Primary Markets

Financial markets where new securities are issued and sold for the first time to investors, such as initial public offerings (IPOs).