Which of the Following Statements Is True of the Securities

question 3

Multiple Choice

Which of the following statements is true of the Securities Act of 1934?

• A)It allows interstate offering of a new security until a registration statement has been filed with and approved by the Securities and Exchange Commission.
• B)It ensures partial disclosure of material facts about the investment opportunity to offerees.
• C)It guarantees the economic merits of any investment opportunity.
• D)It gives the Securities and Exchange Commission the power to suspend trading if it suspects price manipulation.

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Definitions:

Persuasive Authority

Legal sources that a court can consult for guidance but are not binding, such as decisions from other jurisdictions or legal texts.

Binding Decision

A court decision that must be followed by lower courts in the same jurisdiction in cases involving similar facts or legal issues.

Binding Precedent

A legal decision or judgment by a higher court that must be followed by lower courts in the same jurisdiction in cases with similar circumstances.

Published Decision

A judicial decision that is officially reported and made available to the public, often serving as precedent in future cases.