SIE Exam Question 166: Answer and Explanation

Question: 166

Which of the following is not a purpose of the Securities Act of 1933?

• A. Require that investors receive financial and other significant information
• B. Guarantee the financial information received by investors is accurate
• C. Prohibit deceit, misrepresentations, and fraud in the sale of securities
• D. Require the registration of securities

Correct Answer: B

Explanation:

The Securities Act of 1933 requires that investors receive financial and other significant information and that securities be registered, but it does not guarantee the information is accurate. The act also prohibits deceit, misrepresentation, and fraud in the sale of securities.