The Security Act of 1933 requires the preparation and distribution to potential investors of the:
A) registration statement only.
B) registration statement and prospectus.
C) prospectus and licensing agreement.
D) registration statement, prospectus, and licensing agreement.
E) licensing agreement.

Question

Quizplus · Accepted Answer

In regulating the initial sales of securities, the Securities Act of 1933 is viewed as a disclosure law. In essence, this law requires that securities subject to its provisions be registered prior to any sale and that a prospectus be furnished to any potential investor prior to any sale being consummated.

The Security Act of 1933 Requires the Preparation and Distribution