Which of the Following Is True of the Securities Act

question 40

Multiple Choice

Which of the following is true of the Securities Act of 1933?

• A)It guarantees the economic merits of any investment opportunity.
• B)It prohibits full disclosure of all material facts about the investment opportunity to offerees before they invest.
• C)It forbids any interstate offering of a new security until a registration statement has been filed with and approved by the Securities and Exchange Commission.
• D)The Securities and Exchange Commission has repealed the 1933 Act's prescribed relationship between solicitation or sales of a security and the registration process.

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Definitions:

Generalization

A concept in psychology and logic referring to the process of extracting common characteristics from specific examples and applying them to broader contexts.

Saliva Drops

Small quantities of saliva, the clear liquid produced by the glands in the mouth, which aid in digestion and keep the mouth moist.

Hertz Tone

A sound frequency measurement, indicating cycles per second.

Contiguity

The concept in psychology that two events happening close together in time or space are perceived to be related.