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:

Ledger

The principal book or computer file for recording and totaling economic transactions measured in terms of a monetary unit of account by account type.

Accounting Equation

A fundamental principle of accounting representing the relationship between a company's assets, liabilities, and equity (Assets = Liabilities + Equity).

Cash Refund

An amount paid by the seller to the buyer for merchandise that is defective, is damaged during shipment, or does not meet the buyer’s expectations.

Selling Price

The amount of money for which a product or service is offered for sale to customers.