The primary objective of the Securities Act of 1933 is the regulation of which of the following?
A)Trading of securities after their initial issuance.
B)Initial issuances of securities.
C)Adherence to the Sarbanes-Oxley Act of 2002.
D)The registration of audit firms with the PCAOB.

Question

Quizplus · Accepted Answer

The primary objective of the Securities Act of 1933 is to regulate the initial issuance of securities, which includes ensuring that all relevant information is disclosed to potential investors so they can make informed decisions.

None of the other answer choices are correct. The trading of securities after their initial issuance falls under the regulation of the Securities Exchange Act of 1934. Adherence to the Sarbanes-Oxley Act of 2002 is a separate issue related to corporate governance and financial reporting. The registration of audit firms with the PCAOB is also a separate issue related to the oversight of auditors of publicly traded companies.

The Primary Objective of the Securities Act of 1933 Is