The Securities Act of 1933 Has Two Basic Objectives, One

question 54

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:

Operating Income

Earnings from a company's core business operations, excluding revenue and expenses from non-operating activities like investments.

Variable Costs

Costs that vary depending on a company’s level of activity.

Break-even Sales

The amount of revenue from sales needed to cover a company's fixed and variable costs, resulting in zero net income.

Unit Selling Price

The amount of money charged for each individual unit of a product or service sold.