The Securities Act of 1933

question 20

Multiple Choice

The Securities act of 1933

• A) Regulates the trading of securities of publicly held companies.
• B) Regulates the initial public sale and distribution of a corporation's securities.
• C) Addresses the personal duties of corporate officers.
• D) Specifies information that is to be contained in a company's annual report.

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument.

Issue Price

The price at which new shares, bonds, or other securities are offered to the public or existing shareholders for sale.

Stock Dividends Distributable

Shares that are to be given to shareholders as dividends, which have been declared by a company’s board but have not yet been distributed.

Equity Account

An account representing the owner's or shareholders' residual interest in the assets of the entity after deducting liabilities.