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:

Raw Materials

Relates to the basic substances in their natural, modified, or semi-processed states used as inputs for manufacturing finished goods.

Physical Possession

The actual holding or occupying of an object, property, or asset by an individual or entity.

Legal Title

Refers to the formal right of ownership of a property or asset.

Physical Count

The process of manually counting the actual inventory on hand at a certain period to verify the quantities listed in the accounting records.