2) Which of the following statements is true of securities regulation? A) The Se

Question

2) Which of the following statements is true of securities regulation?

A) The Securities Exchange Act of 1934 requires periodic disclosures from issuers of securities.

B) The Securities and Exchange Commission was created by the 1933 Act.

C) The 1933 Act regulates the sale of securities while they are passing from the hands of the issuer into the hands of the private investors.

D) Unlike other federal administrative agencies, the Securities and Exchange Commission has only legislative functions.

Explanation / Answer

Option (A) is correct, because Securities Exchange Act of 1934 requires periodic disclosures from issuers of securities.

B) is incorrect because Securities Exchange Act 1934 created SEC, it only enforced 1933 Act.

C) is not correct because 1933 Act is concerned with disclosures of necessary information with public distribution of securities.

D) is also incorrect as SEC has many other functions.

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