Question

The intent of the registration statement required for all new securities by the Securities Act of 1933 is to: Multiple Choice

1. set the price at which the securities will be offered.
2. guarantee the profitability of the new securities.
3. prevent any insider trading. provide a governmental evaluation of the risks associated with those new securities.
4. provide all necessary information to allow a potential investor to make an informed decision.

Answer 1

Answer:

The correct option is 4

Explanation:

Registration statement is the statement which involve the set of the documents and also contains the prospectus, which a business  must file with theExchange Commission and the U.S (United States) Securities before offered to public.

This statement has 2 principal parts:

1.The company must describe the vital information regarding the operations of the business, risk factors, financial conditions and management in the prospectus.

2. It must involve the financial statements which are audited.

Therefore, the intent of the statement is to provide all the vital information to allow the potential investor to make or take an informed decision.