The Most Important Rule of the 1933 Act Is That

question 40

True/False

The most important rule of the 1933 Act is that every transaction in securities must be registered with the SEC or be exempt from registration.

---

Definitions:

Duress

The use of force, false imprisonment, threats, or psychological pressure to compel someone to act against their will or interest.

Rescission

Rescission is the act of invalidating a contract, returning the parties involved to their positions prior to the agreement, under circumstances such as misrepresentation or fraud.

Fraudulent Misrepresentation

A false statement made knowingly or recklessly with the intent to deceive, leading another to enter into a contract.

Void Ab Initio

A term meaning "void from the beginning," indicating that a contract or agreement was invalid from the start.