The Securities Act of 1933 Did Not

question 38

Multiple Choice

The Securities Act of 1933 did not

• A) require that all securities sold in more than one state be registered with the SEC.
• B) hold corporate officers liable for losses for those who were misled by false information in the prospectus.
• C) set guidelines for insiders who trade in the securities of their own firm.
• D) require a prospectus for all new issues of securities, which contains all information appearing in the registration statement.

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Definitions:

Salary Allowances

Additional benefits or compensations given to employees over and above their regular salary, which could include housing, transportation, or medical allowances.

Net Income

The ultimate earnings of an enterprise once it has accounted for all expenditures and taxes against its total sales.

Liquidating Partnership

The process of dissolving a partnership by selling off assets, paying off liabilities, and distributing the remaining assets to partners.

Capital Accounts

Accounts that reflect the initial and subsequent contributions of owners or partners, along with their share of the net income or loss over time.