The Securities Act of 1934 I) Requires Full Disclosure of Relevant

question 28

Multiple Choice

The Securities Act of 1934 I) requires full disclosure of relevant information relating to the issue of new securities.
II. requires registration of new securities.
III. requires issuance of a prospectus detailing financial prospects of the firm.
IV. established the SEC.
V. requires periodic disclosure of relevant financial information.
VI. empowers SEC to regulate exchanges, OTC trading, brokers, and dealers.

• A) I, II, and III
• B) I, II, III, IV, V, and VI
• C) I, II, and V
• D) I, II, and IV
• E) IV, V, and VI

---

Definitions:

Equity

represents ownership interest in a company or property, often manifested as stock or shares, indicating a stake in the company's assets and profits.

Credit Purchases

Transactions where goods or services are bought using credit rather than paying with cash or check at the time of purchase.

Compound Leverage Ratio

The measure of the level of leverage in a company's capital structure, combining both debt and equity, and its potential effects on the company's returns.

Operating ROA

Operating Return on Assets is a financial metric that measures how efficiently a company can manage its assets to generate earnings.